Petrol Price in Pakistan Cut by Rs6.59 a Litre
The petrol price in Pakistan fell again on Friday, as the government cut petrol by Rs6.59 a litre and high-speed diesel (HSD) by Rs4.25 a litre in the fifth straight reduction.
Petrol will now sell at Rs346 a litre, while HSD will cost Rs378 a litre. The new prices apply from Saturday, November 7, to Tuesday, November 10, because of the public holiday on November 9.
The cut brings petrol below Rs350 a litre for the first time since September 7, exactly two months after the government raised the rate by Rs12.90 to Rs358.77 from Rs345.87.
| Fuel | Old price | New price | Change |
|---|---|---|---|
| Petrol | Rs352.59 | Rs346 | Down Rs6.59 |
| High-speed diesel | Rs382.25 | Rs378 | Down Rs4.25 |
Petrol price in Pakistan: fifth cut in a row
The latest cut follows a cut of Rs9.41 a litre in petrol and Rs5.56 in diesel a day earlier. Feature Pakistan reported that reduction to Rs352.59 on November 5.
Petrol has now fallen by Rs28.51 a litre since November 3, when it stood at Rs374.51. Diesel has fallen by Rs17.20 in the same period, from Rs395.20.
The government has cut fuel prices five times in a row under the daily pricing system. Prices are now fixed each day by the Oil and Gas Regulatory Authority (Ogra) on the basis of international market trends, a system in place since July 17.
Why fuel prices are falling
On November 2, the government announced a 30-day arrangement under which oil refineries will bear a cumulative impact of Rs15 billion a month. The move allows petrol to be sold about Rs15 cheaper than the global market price, and cuts Rs14.71 from the consumer price.
Petroleum Minister Ali Pervaiz Malik told a press conference on Tuesday that work was under way to introduce a similar system for liquefied petroleum gas (LPG).
The government still levies heavy taxes on fuel. Dawn reported that it charges Rs114 a litre in taxes and duties on petrol and Rs100 a litre on diesel.
International crude has eased as hopes of progress in diplomatic talks over the US-Israeli war with Iran have grown. That easing has fed through to pump prices in Pakistan, where rates are now revised daily instead of weekly.
What the cut means for motorists
Petrol is mainly used in private transport, small vehicles, rickshaws and two-wheelers, so price changes hit the middle and lower-middle classes first. Diesel powers heavy transport, power plants and large generators, so its price affects the cost of moving goods.
The relief comes at a time when household budgets are already under strain. Short-term inflation surged to 12.31pc in the latest weekly reading, driven by costly food and LPG. Cheaper fuel should ease some of that pressure, though transporters and traders often pass on only part of a cut. Power costs, meanwhile, are moving the other way: distribution companies have sought a rise of Rs1.34 per unit from December.
Relief scheme and austerity measures
On September 13, Prime Minister Shehbaz Sharif announced a relief scheme offering Rs100 a litre off petrol for motorcycles, three-wheeler rickshaws and cars with engines up to 800cc. Around 11.8 million people are covered.
About 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. Another one million users of cars up to 800cc can claim relief on 30 litres a month, worth up to Rs3,000 each.
On September 17, the government reintroduced austerity measures. Shops, markets, shopping malls and grocery stores must close by 9pm, while fuel allocations for official vehicles were cut by 50pc for three months.
The new prices run for four days because November 9 is a public holiday for Iqbal Day. Ogra will notify the next revision after the holiday.
Fuel prices had peaked on April 3, when petrol reached Rs458.41 a litre and diesel hit Rs520.35. Petrol had climbed from Rs266 in the first week of March, while diesel had risen from Rs281 after the US-Iran war broke out on February 28.
When do the new fuel prices apply?
The new prices apply from Saturday, November 7, to Tuesday, November 10. The four-day window covers the public holiday on November 9.
How much is petrol in Pakistan now?
Petrol costs Rs346 a litre after the Rs6.59 cut, while high-speed diesel costs Rs378 a litre after a Rs4.25 cut.
Why are petrol prices falling?
Prices are falling because international crude has eased and refineries are bearing a Rs15 billion monthly impact under a 30-day arrangement, which cuts about Rs14.71 from the consumer price.
What taxes are charged on petrol?
The government levies Rs114 a litre in taxes and duties on petrol and Rs100 a litre on diesel.
