The federal government has reduced petrol and high-speed diesel prices amid continued volatility in international oil markets.
The federal government has reduced the prices of petrol and high-speed diesel (HSD), providing limited relief to consumers amid continued fluctuations in international oil markets.
Under the revised rates, petrol has become cheaper by Rs1.65 per litre, bringing its price down to Rs389.14. The price of high-speed diesel has been reduced by Rs0.88 per litre to Rs424.04.
According to a Petroleum Division notification, the new prices will take effect from Sept. 19 and remain applicable through Sept. 21.
The Oil and Gas Regulatory Authority (OGRA) linked the latest revision to changes in international petroleum prices, along with movements in premiums and other relevant factors.
Despite the latest reduction, fuel prices remain significantly higher than their levels earlier this year. HSD had reached Rs520.35 per litre on April 3 after rising from around Rs281 per litre following the outbreak of the US-Iran conflict on Feb. 28.
Petrol also reached a peak of Rs458.41 per litre on April 3. Its price had started increasing from around Rs266 per litre during the first week of March.
The government has introduced several austerity measures in response to higher fuel costs. These include directing markets to close by 9 p.m. and reducing fuel allocations for official vehicles by 50% for three months.
Prime Minister Shehbaz Sharif had also announced a fuel relief scheme for motorcycle, rickshaw and small-car users. Under the scheme, owners of two- and three-wheelers are eligible for relief of Rs100 per litre on a monthly quota of 20 litres.
See also: https://clickpakistan.com.pk/pm-fuel-relief-scheme-rs100-petrol-discount/
Owners of vehicles with engines of up to 800cc are eligible for the same relief on a monthly quota of 30 litres.
The government has also moved toward more frequent fuel price reviews because of volatility in international markets. Petroleum Minister Ali Pervaiz Malik announced in July that fuel prices would be determined on a daily basis in response to fluctuations in global oil rates.
Changes in petroleum prices have a direct effect on household budgets and transportation costs. Petrol is widely used by private vehicle owners, motorcyclists and rickshaw operators, while HSD is extensively consumed by heavy transport, power plants and large generators.
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