Petrol price cut by Rs1.49, diesel by Rs2.73 per litre

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

The price of petrol has been cut by Rs1.49 per litre, while the price of HSD has been reduced by Rs2.73 per litre.

Following the reduction, petrol will be available at Rs387.54 per litre, while the new price of HSD has been fixed at Rs402.24 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 HSD has fallen from a peak of Rs520.35 recorded on April 3. It had risen from Rs281 per litre after the US-Iran war broke out on February 28.

Petrol had peaked at Rs458.41 per litre on April 3, after beginning its upward trajectory from Rs266 in the first week of March.

Meanwhile, the government has adopted austerity measures in response to rising international fuel prices.

The measures include a ban on the government’s purchase of durable goods, except for IT equipment, and a shift to teleconferencing for meetings, according to Reuters.

Markets have also been directed to close by 9pm, while fuel allocations for official vehicles have been reduced by 50 per cent for three months.

Prime Minister Shehbaz Sharif has also announced a fuel relief scheme for motorcycles, rickshaws and vehicles with engines of up to 800cc.

The scheme is aimed at providing relief to people affected by rising global oil prices. Reuters reported that disruptions to oil and gas exports through the Strait of Hormuz have followed attacks involving the US, Israel and Iran, while fighting involving Saudi Arabia and Iran-backed Houthis has also threatened trade through the Red Sea.

The government has faced pressure to align domestic petrol and diesel prices with fluctuations in international oil markets.

Jamaat-e-Islami chief Hafiz Naeemur Rehman has called on the government to reduce fuel prices, abolish the petroleum levy and cut state expenditure.

He warned that his party would continue its protest march if its demands were not addressed and announced a nationwide signature campaign to press for the measures.

Petroleum 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.

Speaking to the media in Lahore on Sunday, Malik said the government was aware of the difficulties faced by the public and would pass on 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.