The federal government on Tuesday announced a reduction of Rs5.45 per litre in petrol prices and Rs3.68 per litre in high-speed diesel (HSD) prices, providing some relief to consumers amid declining international oil prices.
According to a notification issued by the Oil and Gas Regulatory Authority (Ogra), the revised petrol price will stand at Rs369.06 per litre, while HSD will be sold at Rs391.52 per litre. The new rates will take effect from Wednesday, November 4.
The price reduction comes as global oil prices dropped by approximately 2 per cent on Tuesday, reaching their lowest levels in three weeks. International markets remained volatile as investors assessed diplomatic efforts to end the conflicts in Ukraine and Iran alongside concerns over potential supply disruptions following recent attacks.
Brent crude futures declined by $1.63, or 2 per cent, to $103.14 per barrel at 8:44pm Pakistan time, while US West Texas Intermediate (WTI) crude fell by 67 cents, or 1 per cent, to $95.79 per barrel. Brent was heading towards its lowest closing level since October 7, while WTI was on course for its lowest close since October 14.
Despite the latest reduction, the government continues to impose substantial taxes and duties on petroleum products, amounting to Rs114 per litre on petrol and Rs100 per litre on diesel.
The price adjustment follows a government arrangement announced on Monday under which oil refineries will absorb a cumulative financial impact of Rs15 billion over 30 days as part of the petroleum levy mechanism. According to the government, the arrangement would facilitate a reduction of Rs14.71 per litre in the consumer price of petrol.
Addressing a press conference on Tuesday, Petroleum Minister Ali Pervaiz Malik said the government was also working to introduce a similar relief mechanism for liquefied petroleum gas (LPG).
Hinting at the anticipated reduction in fuel prices, Malik told reporters that “even better news will come before us”, indicating that further measures aimed at easing the financial burden on consumers could be forthcoming.
Meanwhile, representatives of Jamaat-i-Islami and the federal government held another round of negotiations over proposals to provide petroleum price relief to low-income households. Both sides agreed to continue discussions in the coming days as efforts to develop targeted relief measures remained underway.