Petrol falls to Rs381.14 per litre and high-speed diesel to Rs389.27 as geopolitical tensions continue to affect global oil markets.
Pakistan’s federal government has reduced petrol and high-speed diesel (HSD) prices for October 20, bringing the new rates to Rs381.14 and Rs389.27 per litre, respectively, amid continued volatility in international oil markets.
According to a notification issued by the Petroleum Division, petrol prices have been cut by Rs5.16 per litre, while HSD has become cheaper by Rs7.69 per litre.
The latest revision follows a Rs3.93 per litre reduction in petrol prices, while diesel prices remained unchanged from October 17 to 19.
The government introduced a daily petroleum pricing mechanism on July 17, replacing the previous weekly review system amid renewed tensions between the United States and Iran and concerns over global fuel supplies.
Fuel relief and austerity measures
On September 13, Prime Minister Shehbaz Sharif announced a proposed relief scheme offering a subsidy of Rs100 per litre to eligible motorcyclists, three-wheeler rickshaw users and owners of cars with engines up to 800cc.
The scheme was expected to cover 11.8 million beneficiaries, with monthly relief of up to Rs2,000 for two-wheelers and three-wheelers and Rs3,000 for eligible small-car owners.
The government also reintroduced austerity and fuel conservation measures on September 17. Under the notified restrictions, most shops and markets were required to close by 9pm, marriage halls by 10pm and restaurants by 11pm, with takeaway and home delivery services exempt.
Global oil market volatility
International crude oil prices remain under pressure from geopolitical tensions and disruptions to shipping routes, particularly the Strait of Hormuz and the Red Sea.
Brent crude futures rose 17 cents, or 0.15%, to $110.03 per barrel on Monday, after falling more than $3 earlier in the session.
The market reacted to reported attacks claimed by Yemen’s Iran-aligned Houthis against Saudi targets and an Iranian report of an oil tanker striking a naval mine in the Strait of Hormuz. The claims concerning the attacks were not independently verified by Reuters.
With Pakistan relying heavily on imported petroleum, fluctuations in international oil prices and shipping costs can influence domestic fuel prices and transport expenses.