Petrol price increases to Rs394.83 per litre, while HSD will cost Rs395.85 under daily price mechanism
People wait their turn to get fuel at a petrol station, in Karachi, Pakistan June 2, 2022. Picture taken June 2, 2022. — REUTERS
The federal government on Tuesday increased the price of petrol by Rs1.19 per litre, while decreasing the price of high-speed diesel (HSD) by Rs1.91 per litre for October 7.
According to a notification issued by the Petroleum Division, the price of petrol was fixed at Rs394.83 per litre, while HSD would cost Rs395.85 per litre for Wednesday.
The latest revision comes a day after the government increased the price of petrol by 88 paisas per litre, while decreasing the price of HSD by Rs1.88 per litre for October 6.
Read: Govt increases petrol by 88 paisas, cuts diesel by Rs1.88 for Oct 6
On July 17, the government announced a new pricing mechanism under which petroleum product prices would be reviewed and notified daily, replacing the weekly pricing mechanism, as renewed tensions between the United States and Iran continued to drive volatility in global oil markets and raise concerns over fuel supplies.
On September 13, PM Shehbaz announced a special relief scheme offering Rs100 per litre off petrol for motorcycles, three-wheeler rickshaws and cars with engines up to 800cc, in an attempt to shield lower-income consumers from the impact of rising petroleum prices.
Under the proposal, an estimated 11.8 million beneficiaries would be covered. Around 10 million two-wheeler users and 800,000 three-wheeler users would be entitled to relief on 20 litres of fuel per month, translating into a maximum monthly benefit of Rs2,000 per beneficiary.
Another one million users of cars up to 800cc would receive relief on 30 litres per month, providing them with a maximum benefit of Rs3,000 each.
On Sept 17, the government reintroduced austerity and fuel conservation measures amid rising fuel prices, tightening business operating hours and restricting public events.
Under the measures, notified with immediate effect, shops, markets, shopping malls, bazaars, departmental stores, grocery stores, general stores and kiryana shops would close by 9pm throughout the week, according to a notification issued by the Cabinet Division.
Marriage halls, marquees and other commercial venues hosting festive events would close by 10pm, while restaurants, cafes, eateries, food outlets and standalone fruit and vegetable shops would be allowed to operate until 11pm. Takeaway and home delivery services would remain exempt from the timing restrictions.
Global geopolitical developments continue to pose significant risks. International oil prices are influenced by decisions taken by OPEC+, conflicts in the Middle East, sanctions on oil-producing nations, and disruptions in critical shipping routes such as the Strait of Hormuz and the Red Sea. Any interruption in these supply chains can immediately increase crude oil prices and freight costs. Since Pakistan imports the majority of its petroleum requirements, these developments quickly translate into higher domestic fuel prices.
Oil prices were steady on Tuesday after recovering earlier losses, as the market weighed increases in Middle Eastern crude exports and a planned Group of Seven release of emergency diesel and crude stockpiles against supply concerns related to attacks by the Iran-backed Houthis in Yemen.
Brent futures were down 29 cents, or 0.3%, at $100.03 a barrel at 12:33 pm EDT (1633 GMT), while US West Texas Intermediate (WTI) crude rose 16 cents, or 0.2%, to $89.59.
“The price of the global crude benchmark, Brent, is once again toiling around $100/barrel, as its reasons for trading much beyond the psychological 3-digit mark are being eroded … for now the assumption of more crude getting through has dampened price fervour,” said John Evans, an analyst at oil broker PVM.
