The federal government on Wednesday announced another reduction in petroleum prices, cutting petrol by Rs3 per litre and high-speed diesel (HSD) by Rs7 per litre, with the revised rates taking effect on Thursday, November 12.
According to a notification issued by the Oil and Gas Regulatory Authority (Ogra), petrol will now cost Rs335 per litre, while high-speed diesel will be sold at Rs364 per litre.
Despite the latest reduction, the government continues to collect Rs114 per litre in taxes and duties on petrol and Rs100 per litre on diesel.
The price adjustment comes amid government efforts to provide relief to consumers following months of sharp increases in fuel costs linked to the ongoing conflict in the Middle East.
Under an arrangement announced on November 2, oil refineries agreed to absorb a cumulative impact of Rs15 billion through contributions towards the petroleum levy over a 30-day period.
According to the government, the arrangement enables a reduction of Rs14.71 per litre in petrol prices for consumers.
Earlier, on September 17, the government launched the Prime Minister’s Fuel Relief Scheme nationwide to ease the financial burden on motorists affected by rising petroleum prices.
The subsidy programme covers owners of motorcycles, rickshaws and vehicles with engine capacities of up to 800cc.
Meanwhile, government representatives and Jamaat-i-Islami held another round of negotiations on Wednesday to discuss further measures aimed at providing relief from high petroleum prices.
Fuel prices had risen sharply following the outbreak of the US-Iran war on February 28.
High-speed diesel, which was priced at approximately Rs281 per litre before the conflict, climbed to a peak of Rs520.35 on April 3 before gradually declining to its newly announced rate of Rs364.
Similarly, petrol prices increased from around Rs266 per litre in early March to a peak of Rs458.41 on April 3, before falling to Rs335 following the latest adjustment.
The government has also reintroduced austerity measures to reduce fuel consumption and manage economic pressures arising from the Middle East conflict.
Under these measures, markets are required to close by 9pm, while fuel allocations for official vehicles have been reduced by 50 per cent for three months.
The latest price cuts offer further relief to consumers, although petroleum prices remain considerably higher than their levels before the regional conflict began.