Petrol, diesel prices cut by Rs2.27, Rs3.56 per litre

The federal government has reduced the prices of petrol and high-speed diesel (HSD), according to a new notification issued by the Oil and Gas Regulatory Authority (OGRA).

The price of petrol has been reduced by Rs2.27 per litre, while the price of HSD has been cut by Rs3.56 per litre.

Following the reduction, petrol will now be available at Rs389.30 per litre, while the price of HSD has been fixed at Rs404.97 per litre.

The revised prices will take effect from midnight and remain in force until new rates are announced, according to the notification.

The price of diesel has come down from a peak of Rs520.35 recorded on April 3. Its price had started rising from Rs281 per litre after the US-Iran war broke out on February 28.

The petrol price had peaked at Rs458.41 on April 3 after beginning its upward trajectory from Rs266 in the first week of March.

Meanwhile, the government has once again adopted austerity measures in response to rising fuel prices in the international market. The austerity measures also include a ban on government purchase of all durable goods except IT procurement and a switch to teleconferencing for meetings, according to Reuters. Under these measures, markets are also required to close by 9pm and fuel allocations for official vehicles has been cut by 50 per cent for three months.

Prime Minister Shehbaz Sharif has announced a “relief scheme” that aims at providing ease to the individuals using motorcycles, autos and vehicles of up to 800cc. The scheme will “alleviate the burden” of rising global oil prices from these individuals. Attacks by the US and Israel ​on ⁠Iran over six months ago has led to the disruption of oil and gas exports through the Strait of Hormuz, according to Reuters. ⁠Now, ​fighting between Saudi Arabia and the ​Iran-backed Houthis also imperils trade through the Red Sea.

The government has been under pressure since the outbreak of the Middle East conflict, as it faces calls to align domestic petrol and diesel prices with fluctuations in international oil markets.

Jamaat-e-Islami (JI) chief Hafiz Naeemur Rehman has called on the government to reduce fuel prices, abolish the petroleum levy and cut state expenditures. He warned that the party would continue its protest march if its demands were not addressed and announced a nationwide signature campaign to press for the measures.

Petrol Minister Ali Pervaiz Malik has said the government will continue its petrol subsidy scheme for up to 10 months, if necessary, to provide relief to the public.

He said this while speaking to media in Lahore on Sunday.

The minister said the government was aware of the difficulties being faced by the public and would pass on the benefit of any decline in international oil prices to consumers.

“The petrol subsidy scheme will be continued for the public if it has to run for 10 months,” Malik said, adding that the government was spending between Rs35 billion and Rs40 billion a month on the scheme.