Petrol up Rs1.82 to Rs396.65, diesel cut 91 paisas in Oct 8 revision
Petrol up Rs1.82 to Rs396.65, diesel cut 91 paisas in Oct 8 revision
ISLAMABAD: The federal government on Wednesday raised the price of petrol by Rs1.82 per litre to Rs396.65, while reducing high-speed diesel (HSD) by 91 paisas to Rs394.94 per litre. The petrol price October 8 notification, issued by the Petroleum Division, takes effect on Thursday.
It is the second consecutive daily revision. A day earlier, the government had increased petrol by Rs1.19 per litre and cut diesel by Rs1.91 for October 7.
Petrol price October 8: second daily hike in a row
Petrol has now risen on two successive days, adding Rs3.01 per litre within 48 hours. Diesel, by contrast, has fallen on both days, down a cumulative Rs2.82 per litre over the same period.
The back-to-back adjustments show how closely pump prices now track international market swings. Pakistan imports most of its petroleum requirements, so any movement in global crude prices and freight costs feeds through to local consumers almost immediately.
Daily pricing replaced the weekly system in July
On July 17, the government moved to a daily pricing mechanism, under which petroleum product prices are reviewed and notified every day. The change replaced the previous weekly revision cycle.
Officials linked the switch to renewed tensions between the United States and Iran, which have kept global oil markets volatile and raised concerns over fuel supplies through critical shipping lanes such as the Strait of Hormuz.
Relief scheme and austerity measures
On September 13, Prime Minister Shehbaz Sharif announced a relief scheme offering Rs100 per litre off petrol for motorcycles, three-wheeler rickshaws and cars with engines up to 800cc, aimed at shielding lower-income consumers from rising fuel costs.
The scheme is expected to cover about 11.8 million beneficiaries. Around 10 million two-wheeler users and 800,000 three-wheeler users can claim relief on 20 litres a month, worth up to Rs2,000 each, while one million owners of 800cc cars get relief on 30 litres a month, worth up to Rs3,000 each.
Separately, on September 17 the government reintroduced austerity and fuel conservation measures. Shops, markets and malls must close by 9pm, marriage halls and marquees by 10pm, and restaurants and eateries by 11pm, though takeaway and home delivery remain exempt.
Brent holds above $100 a barrel
Global oil prices rose on Wednesday, with Brent futures holding above $100 a barrel on supply concerns. Brent was up $1.29, or 1.28 per cent, at $101.87 a barrel, while US West Texas Intermediate crude rose 22 cents to $89.66.
Investors weighed a surprise drop in US crude stocks, war-driven bottlenecks and a storm heading for American oil-producing regions. Analysts at UBS said releases from strategic oil reserves could contain near-term price spikes but would not remove the underlying tightness in the market.
Related: Govt increases petrol by Rs1.19, cuts diesel by Rs1.91 for Oct 7
Frequently asked questions
What are the new petrol and diesel prices?
Petrol costs Rs396.65 per litre and high-speed diesel Rs394.94 per litre from Thursday, October 8, after a Rs1.82 increase in petrol and a 91-paisa cut in diesel.
Why are fuel prices revised every day?
Since July 17, the government notifies petroleum prices daily instead of weekly, citing volatility in global oil markets driven by US-Iran tensions and supply concerns.
Who qualifies for the Rs100 per litre petrol relief?
Motorcycle and three-wheeler rickshaw users, plus owners of cars up to 800cc, covering an estimated 11.8 million beneficiaries with monthly fuel limits.
