Pakistan Reduces Petrol and Diesel Prices From September 25
ISLAMABAD: The federal government has reduced the price of petrol by Rs0.84 per litre and high-speed diesel (HSD) by Rs2.63 per litre, with the revised rates taking effect from September 25.
According to a notification issued by the Petroleum Division, petrol will now be available at Rs389.28 per litre, while the price of high-speed diesel has been fixed at Rs412.12 per litre.
The government continues to collect taxes and duties of Rs114 per litre on petrol and Rs100 per litre on diesel.
Fuel Prices Decline From Earlier Highs
The latest reduction comes after fuel prices recorded significant increases earlier this year.
The price of HSD had reached Rs520.35 per litre on April 3, after rising from Rs281 per litre following the outbreak of the US-Iran conflict on February 28.
Petrol had also climbed to Rs458.41 per litre on April 3, after starting to increase from Rs266 per litre in the first week of March.
The government has subsequently adjusted fuel prices in response to changes in international oil markets.
Daily Fuel Price Mechanism
The government introduced a system under which fuel prices can be reviewed on a daily basis according to movements in international markets.
Petroleum Minister Ali Pervaiz Malik had earlier announced that the Oil and Gas Regulatory Authority (OGRA) would be responsible for determining fuel prices based on international market trends.
Before the daily pricing mechanism, fuel rates had been revised on a weekly basis.
Measures to Conserve Fuel
The government has also introduced measures aimed at reducing fuel consumption amid higher international oil prices and continuing tensions in the Middle East.
Under the latest austerity measures, markets have been directed to close by 9pm, while fuel allocations for official vehicles have been reduced by 50 percent for a period of three months.
Prime Minister Shehbaz Sharif also announced a relief scheme for owners of motorcycles, rickshaws and vehicles with engines up to 800cc to help reduce the impact of higher fuel costs.
Impact of Petrol and Diesel Prices
Petrol is widely used by private vehicles, motorcycles, rickshaws and other small vehicles, making changes in its price particularly relevant to household transport expenses.
Diesel is extensively used by heavy transport vehicles, power plants and large generators, meaning its price also affects transportation and operating costs across various sectors.
Petrol and HSD remain among the government’s major petroleum revenue sources, with combined monthly sales running into hundreds of thousands of tonnes, while kerosene demand is considerably lower.
