The government on Wednesday cut the price of petrol by Rs2.71 a litre and raised the price of high-speed diesel (HSD) by 31 paisas a litre for Thursday, October 22, The Express Tribune reported.
According to a Petroleum Division notification, petrol will cost Rs379.31 a litre and HSD Rs390.11 a litre on Thursday.
The change comes a day after the government raised petrol by 88 paisas and diesel by 53 paisas a litre for October 21.
Prices at a glance
| Fuel | New price (Oct 22) | Change |
|---|---|---|
| Petrol | Rs379.31 a litre | down Rs2.71 |
| High-speed diesel | Rs390.11 a litre | up 31 paisas |
On October 9, petrol cost Rs398.96 a litre and diesel Rs395.72, according to the notification for that day. That means petrol is now about Rs19.65 a litre cheaper than it was less than two weeks ago, and diesel about Rs5.61 cheaper.
Why prices change every day
On July 17, the government replaced the weekly pricing system with daily reviews of petroleum prices. It made the change as renewed tensions between the United States and Iran drove swings in global oil markets and raised worries about fuel supplies.
International prices depend on decisions by OPEC+, conflict in the Middle East, sanctions on oil producers and disruption on key shipping routes such as the Strait of Hormuz and the Red Sea. Because Pakistan imports most of its fuel, any disruption quickly raises crude and freight costs at home.
On Wednesday, oil was little changed. Brent crude rose 27 cents, or 0.2%, to $109.04 a barrel by 1450 GMT, while US West Texas Intermediate fell 11 cents to $97.72, Reuters reported. Investors weighed possible progress towards Russia-Ukraine talks against falling US oil stocks and the lack of US-Iran dialogue.
“Crude futures are trading both sides of unchanged this morning but well below the overnight highs as attacks in the Strait of Hormuz look to be continuing with at least two more ships being struck overnight,” said Dennis Kissler of BOK Financial.
Relief for bikes and small cars
On September 13, Prime Minister Shehbaz Sharif announced a relief scheme giving Rs100 a litre off petrol for motorcycles, rickshaws and cars up to 800cc. About 11.8 million people are expected to benefit:
- Motorcycles and rickshaws: around 10 million two-wheeler users and 800,000 three-wheeler users get relief on 20 litres a month, worth up to Rs2,000.
- Small cars: about one million owners of cars up to 800cc get relief on 30 litres a month, worth up to Rs3,000.
Early closing still in force
On September 17, the government brought back austerity and fuel-saving measures. Shops, markets, malls and grocery stores must close by 9pm every day. Marriage halls and other event venues close by 10pm, and restaurants, cafes and fruit and vegetable shops can stay open until 11pm. Takeaway and home delivery are exempt.
Cooking gas is also under pressure. LPG cylinders are selling at more than twice the official price amid a supply shortage, while Jamaat-e-Islami is due to begin sit-ins against the petroleum levy on Friday.
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