The federal government has increased the price of petrol by Rs3.26 per litre for October 2, while reducing the price of high-speed diesel (HSD) by Rs1.01 per litre under Pakistan’s daily petroleum pricing mechanism.
Following the latest adjustment, the price of petrol has reached Rs390.66 per litre, while high-speed diesel is now priced at Rs399.34 per litre.
The latest revision came only a day after the government reduced petrol and diesel prices for October 1. Petrol had been reduced by 14 paisas per litre, while the price of HSD was cut by Rs1.89 per litre.
Pakistan introduced a daily petroleum pricing system in July, replacing the previous weekly review mechanism. The system allows domestic fuel prices to respond more quickly to changes in international oil markets.
The latest increase in petrol prices comes amid continued volatility in global crude markets. International oil prices have been affected by geopolitical tensions, supply concerns and disruptions to major shipping routes.
Global oil prices rose by more than $3 per barrel on Thursday after China suspended exports of oil products to markets outside Hong Kong and Macau. The development raised concerns about tighter fuel supplies in international markets.
Brent crude futures for December were trading at around $101.20 per barrel, representing an increase of about 3.2 percent from the previous close. The previous front-month contract had settled at $103.50 per barrel after gaining around 14 percent during September.
Pakistan remains exposed to international oil price movements because of its reliance on imported petroleum products. Changes in global crude prices can therefore have a direct impact on domestic fuel prices under the country’s daily pricing mechanism.
The government has also announced a fuel relief scheme aimed at providing support to lower-income consumers affected by higher petrol prices. Under the proposed scheme, eligible motorcycles, three-wheelers and cars with engines of up to 800cc would receive a subsidy of Rs100 per litre.
Around 11.8 million consumers are expected to benefit from the fuel relief programme. Eligible motorcycle and three-wheeler users would receive the subsidy on up to 20 litres of petrol per month, while qualifying small-car owners would receive relief on up to 30 litres.
With the new adjustment, motorists will face a higher petrol price while diesel users will see a reduction in the HSD rate. Further changes could follow depending on movements in international oil prices under Pakistan’s daily fuel pricing system.
