The latest petrol price cut brings fresh relief for motorists, with the government reducing the price by Rs3.93 per litre on Friday night. Petrol will now retail at Rs386.30 per litre, while high-speed diesel (HSD) stays unchanged at Rs396.96.
The Petroleum Division’s notification said the new prices apply from Saturday, October 17, to Monday, October 19. The government continues to collect Rs114 per litre in taxes and duties on petrol and Rs100 per litre on diesel, so the cut reflects a fall in the base price rather than any tax concession.
The move is the second reduction in two days. On October 15, petrol had already fallen by Rs2.90 to Rs390.23 a litre. Put together, the two revisions have taken Rs7.56 off the litre in about 48 hours, bringing the price down from Rs393.86 earlier in the week. The quick back-to-back cuts mark the steepest short-term fall in fuel prices in months.
Petrol price cut follows Ogra’s daily pricing cycle
Fuel prices in Pakistan are now revised on a daily basis. Petroleum Minister Ali Pervaiz Malik announced the shift to daily pricing on July 17, handing the Oil and Gas Regulatory Authority (Ogra) the task of setting prices each day in line with international market trends. The change came amid renewed hostilities between Iran and the United States, which had pushed global oil markets into a volatile spell.
Before the daily cycle, the government had been announcing weekly revisions since early March, alongside measures to conserve fuel in case Middle East tensions disrupted oil supplies. In April, targeted relief measures for subsidised fuel were also announced.
Petrol prices have swung sharply this year. The price peaked at Rs458.41 per litre on April 3 after climbing from around Rs266 in the first week of March. Diesel touched an even higher peak of Rs520.35 on the same April date, after rising from about Rs281 when the US-Iran war broke out on February 28.
What the new petrol price means for households
Petrol is used mainly in private transport, small vehicles, rickshaws and two-wheelers, so changes in its price hit the middle and lower-middle classes first. A cheaper litre gives direct relief to commuters, small traders and delivery riders, whose fuel bills make up a large share of their daily costs.
Diesel tells a different story. Because it powers heavy transport, power plants and large generators, a steady diesel price keeps pressure on freight costs and, through them, on the prices of goods in markets. Diesel has come down from its April peak but remains far above last year’s levels.
Monthly sales of petrol and high-speed diesel run at about 700,000 to 800,000 tonnes each, which makes them the government’s biggest fuel revenue earners. Kerosene demand is far smaller at roughly 10,000 tonnes a month.
Austerity measures run alongside the relief
The government has also reintroduced a set of austerity steps in response to rising fuel prices linked to the Middle East conflict. Under these measures, markets must close by 9pm, and fuel allocations for official vehicles have been cut by half for three months.
On September 13, Prime Minister Shehbaz Sharif announced a relief scheme for users of motorcycles, auto-rickshaws and vehicles of up to 800cc, saying it would ease the burden of rising global oil prices on small vehicle owners.
What happens next
Prices for the next cycle will be announced on Monday night. With Ogra now deciding rates daily, motorists should expect more frequent but smaller changes rather than the large fortnightly jumps of the past. Whether the current downward run continues will depend on how international prices and the rupee behave over the weekend.
Frequently asked questions
What is the new petrol price in Pakistan?
Petrol now retails at Rs386.30 per litre after a Rs3.93 cut, effective from October 17 to October 19.
Did the diesel price change?
No. High-speed diesel remains unchanged at Rs396.96 per litre.
How much has petrol fallen this week?
Petrol has dropped Rs7.56 in about two days, from Rs393.86 to Rs386.30, across two back-to-back cuts.
Who decides fuel prices now?
Ogra sets prices on a daily basis using international market trends, a system introduced on July 17.
Source: Dawn
Related: Petrol Falls Rs2.90 to Rs390.23 as Diesel Edges Up, Petrol Price Rises Rs1.20 to Rs393.86
