The federal government on Wednesday announced a further reduction in fuel prices, cutting petrol by Rs0.14 per litre and high-speed diesel (HSD) by Rs1.89 per litre, with the new rates taking effect on Thursday, October 1.
According to a notification issued by the Petroleum Division, petrol will now cost Rs387.40 per litre, while HSD has been reduced to Rs400.35 per litre.
Despite the reduction, taxes and duties remain substantial. The government continues to levy approximately Rs114 per litre on petrol and Rs100 per litre on diesel.
Fuel prices have fallen considerably from the record levels reached earlier this year following the outbreak of the US-Iran war on February 28.
HSD, which was around Rs281 per litre when the conflict began, climbed to a peak of Rs520.35 on April 3. At the new price of Rs400.35, diesel is now Rs120 per litre below its April peak.
Petrol similarly rose from around Rs266 per litre in early March to a record Rs458.41 on April 3. Its new price of Rs387.40 represents a decline of more than Rs71 per litre from that peak.
Amid continued volatility in global energy markets, the government has also reintroduced austerity measures to curb fuel consumption. Markets are required to close by 9pm, while fuel allocations for official government vehicles have been reduced by 50% for three months.
Prime Minister Shehbaz Sharif announced a separate fuel relief scheme on September 13 for users of motorcycles, rickshaws and vehicles with engines of up to 800cc, intended to ease the impact of elevated global oil prices on lower-income consumers.
Deputy Prime Minister and Foreign Minister Ishaq Dar praised the implementation of the scheme on September 29, saying its success reflected a “whole of government” approach.