Govt cuts petrol by Rs2.71, diesel by 3 paisas for Oct 14

Petrol price decreases to Rs392.66 per litre, while HSD will cost Rs396.82 under daily price mechanism

The federal government on Tuesday decreased the price of petrol and high-speed diesel (HSD) by Rs2.71 and 3 paisas per litre, respectively, for October 14.

According to a notification issued by the Petroleum Division, the price of petrol was fixed at Rs392.66 per litre, while HSD would cost Rs396.82 per litre for Wednesday.

The latest revision comes a day after the government decreased the price of petrol by Rs2.93 per litre, while increasing the price of HSD by 61 paisas per litre for October 13.

Read: Govt cuts petrol by Rs2.93, increases diesel by 61 paisas for Oct 13

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 mixed on Tuesday as hopes that the US-Russia diesel deal could free up more supplies from Moscow offset attacks in Saudi Arabia ‌and Yemen that could result in additional supply disruptions.

Brent futures were down 59 cents, or 0.6%, at $106.06 per barrel at 12:59 pm EDT (1659 GMT), while US West Texas Intermediate crude futures rose 73 cents, or 0.8%, to $94.47.

Diesel prices rose to record highs in many parts of the world in recent ‌weeks due ⁠to global supply disruptions linked to Ukraine's attacks on Russian energy infrastructure and Iran's attacks on Middle East energy infrastructure.