The government on Tuesday reduced the price of petrol by Rs5.45 per litre and that of high-speed diesel (HSD) by Rs3.68.
Following the revision, petrol will retail at Rs369.06 per litre, while HSD will cost Rs391.52.
The prices are applicable for Nov 4 (Wednesday), according to a notification by the Oil and Gas Regulatory Authority (Ogra).
The latest price cut also comes as international oil prices slid about 2 per cent to a three-week low on Tuesday in volatile trade. The market weighed talks to end the wars in Ukraine and Iran against worries about additional supply disruptions from recent attacks in both conflicts.
Brent futures fell $1.63, or 2pc, to $103.14 a barrel at 8:44pm PKT, while US West Texas Intermediate crude fell 67 cents, or 1pc, to $95.79. Brent was on track for its lowest close since Oct 7 and WTI was headed for its lowest close since Oct 14.
The government continues to levy Rs114 per litre in taxes and duties on petrol and Rs100 per litre on diesel.
Under an arrangement announced on Monday for 30 days, oil refineries will contribute to the petroleum levy by bearing a cumulative impact of Rs15 billion, according to the government. This would allow a Rs14.71 reduction in the petrol price at the consumer end.
Addressing a press conference today, Petroleum Minister Ali Pervaiz Malik said efforts were being made to introduce a similar system for liquefied petroleum gas (LPG).
He also hinted at the latest reduction in fuel prices, saying “even better news will come before us”.
Meanwhile, Jamaat-i-Islami and the government held another round of talks to discuss possible relief to low-income citizens in petroleum prices, and agreed to continue their negotiations in the coming days.
Rise in fuel prices
The price of HSD has come down from a peak of Rs520.35 recorded on April 3. Its price had started rising from Rs281 per litre after the US-Iran war broke out on Feb 28.
The petrol price had peaked at Rs458.41 on April 3 after beginning its upward trajectory from Rs266 in the first week of March.
Meanwhile, the government has reintroduced a raft of austerity measures in response to rising fuel prices amid the ongoing Middle East conflict. Under these measures, markets are required to close by 9pm, and fuel allocations for official vehicles have been cut by 50pc for three months.
On Sept 13, PM Shehbaz also announced a “relief scheme” for users of motorcycles, autos and vehicles of up to 800cc to “alleviate the burden” of rising global oil prices.
Previously, on July 17, the petroleum minister announced that fuel prices would now be fixed on a daily basis due to fluctuations in international market prices following renewed hostilities between Iran and the US.
Prior to this, the government had been announcing weekly revisions to fuel prices since early March, alongside measures for the conservation of fuel amid possible oil supply disruptions due to the ongoing conflict in the Middle East. The federal government in April also announced targeted relief measures to provide subsidised fuel.
The petroleum minister stated that the cabinet and the prime minister had decided to give Ogra the responsibility of deciding fuel prices on a daily basis based on international market trends.
Petrol is mainly used in private transport, small vehicles, rickshaws and two-wheelers, and changes in its price affect the middle and lower-middle classes.
Similarly, changes in diesel prices also impact the public at large, as it is mainly used in the heavy transport sector, power plants and large generators.
Petrol and HSD are the major revenue earners, with monthly sales of about 700,000 to 800,000 tonnes, compared to just 10,000 tonnes of monthly demand for kerosene.
Additional input by Reuters
