Government Cuts Petrol Price by Rs3.63 and Raises Diesel Rate
The government reduced the price of petrol by Rs3.63 per litre while raising high-speed diesel by Re0.31 per litre, bringing retail costs to Rs390.23 and Rs396.96 per litre respectively, dawn.com reported. The new rates take effect on Friday, Oct 16, according to the Petroleum Division’s notification.
Government Taxes Petrol and Diesel Amid Market Volatility
The government continues to impose Rs114 per litre in taxes and duties on petrol alongside Rs100 per litre on diesel. These adjustments follow a series of frequent price revisions driven by international market volatility. Brent crude futures gained 2% to reach $106.76 per barrel.
Fuel costs remain well below their spring peaks. High-speed diesel previously reached Rs520.35 per litre on April 3 after climbing from Rs281 following the outbreak of the US-Iran war on February 28, dawn.com reported. Petrol similarly peaked at Rs458.41 per litre on April 3 after starting an upward trajectory from Rs266 in early March.
Administration Mandates Conservation and Launches Relief Schemes
In response to elevated energy expenses, the administration reinstated broad conservation mandates. Markets must now close by 9 PM, and official vehicle fuel allocations face a 50 percent reduction for a three-month duration. Prime Minister Shehbaz Sharif previously launched a targeted relief scheme on September 13 designed to ease the financial pressure on operators of motorcycles, auto-rickshaws, and vehicles under 800cc.
Retail pricing authority shifted under a policy announced on July 17 by Petroleum Minister Ali Pervaiz Malik, empowering the Oil and Gas Regulatory Authority to fix fuel rates on a daily basis to mirror international market trends. Petrol primarily fuels private automobiles, motorcycles, and rickshaws, directly affecting middle and lower-middle-class households. High-speed diesel powers the heavy transport network, large generators, and power plants, exerting a broader influence on industrial supply chains and commercial overhead.