Govt slashes petrol by Rs3.4, high-speed diesel by Rs7.76

New petrol price is Rs374.51 while HSD is Rs395.2

The federal government on Monday slashed the price of petrol by Rs3.4 per litre and that of high-speed diesel (HSD) by Rs7.76 for November 3.

A press release from the Oil and Gas Regulatory Authority said the new petrol price was Rs374.51 while HSD was Rs395.2.

Earlier today, the government announced that oil refineries would bear a burden of Rs15 billion per month, which would allow petrol to be sold Rs15 cheaper than it was in the global market amid the US-Israeli war on Iran.

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, Prime Minister Shehbaz Sharif 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.