The government on Tuesday slashed the price of petrol by Rs8 per litre and that of high-speed diesel (HSD) by Rs7.

Following the revision, petrol will retail at Rs338 per litre, while HSD will cost Rs371 on Nov 11 (Wednesday), according to a notification by the Oil and Gas Regulatory Authority (Ogra).

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 Nov 2, for 30 days, oil refineries will contribute to the petroleum levy by bearing a cumulative impact of Rs15 billion, according to the government. This allows a Rs14.71 reduction in the petrol price at the consumer end.

On Sept 17, the government rolled out the Prime Minister’s Fuel Relief Scheme across the country to ease the public’s burden amid rising fuel prices due to the Middle East situation.

The subsidy scheme applies to owners of motorcycles, rickshaws and vehicles of up to 800cc.

The government and Jamaat-i-Islami held another round of negotiations today to formulate a way forward on relief in petroleum prices.

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.

Since July 17, the government has been revising fuel prices on a near-daily basis due to fluctuations in international market prices following renewed hostilities between Iran and the US.

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.

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 conflict. The federal government had also announced targeted relief measures in April to provide subsidised fuel.

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.