Petrol price reduced by Rs7.06 per litre, diesel by Rs3.71

The federal government on Wednesday approved fresh prices for petrol and diesel following recommendations from the Oil and Gas Regulatory Authority (OGRA), forwarded to the Petroleum Division.

The price of petrol has been reduced by Rs7.06 per litre, bringing its new rate to Rs362 per litre. Similarly, the price of High-Speed Diesel (HSD) has been cut by Rs3.71 per litre to Rs387.81.

The revised prices will take effect from Wednesday night and remain in force until the next review, as the government continues to monitor fluctuations in international oil markets.

Meanwhile, global oil prices recorded a sharp decline, with US benchmark West Texas Intermediate (WTI) crude falling 4.19 per cent to $92.06 per barrel. Brent crude also dropped 4.38 per cent to $99.06 per barrel.

Murban crude, another key international benchmark, declined by $1.27 to $100.90 per barrel. In contrast, natural gas futures rose 1.04 per cent to $2.925.

This marks the third consecutive reduction in domestic petrol and diesel prices by the government. In the previous revision, petrol was cut by Rs5.45 per litre to Rs369.06, while diesel was reduced by Rs3.68 to Rs391.52 per litre.

Further changes in domestic petroleum prices will depend on movements in the international oil market and the government’s next pricing review.

Government sets refinery premium limit

The Petroleum Minister Pervaiz Malik said that the government had set a maximum petroleum premium of $20 per barrel for local refineries, compared with around $5 per barrel before the crisis.

Addressing a conference alongside Information Minister Attaullah Tarar, he warned that the government would intervene if any sector attempted to make excessive profits during the crisis by shifting the financial burden onto consumers.

The minister said the government would seek to resume its deregulation policy once conditions normalised and petrol import premiums returned to the $15-$20 per barrel range.

He said the government’s long-term objective was to promote competition in the petroleum sector to ensure better services and cheaper fuel for consumers.

The minister added that consultations with refineries would continue to address their concerns.

He said the government had taken the measures while considering rising international fuel prices, Pakistan’s economic constraints and its commitments to the International Monetary Fund (IMF).

Tarar said Prime Minister Shehbaz Sharif had directed the government from the outset to minimise the burden of rising fuel prices on the public.

He said the situation in the Strait of Hormuz and Bab el-Mandeb, along with wider international developments, had affected economies around the world, including Pakistan.

However, Tarar said Pakistan’s major macroeconomic indicators had largely remained stable and its economy had not suffered as severe a setback as several other economies.

He reiterated that the prime minister had instructed officials to ensure that increases in international fuel prices were not passed on to consumers, particularly when petrol prices were expected to rise by Rs15 per litre on Friday.

Tarar also highlighted the government’s fuel subsidy scheme, under which registered motorcyclists receive a weekly subsidy of Rs500, while owners of vehicles with engines up to 800cc can purchase 10 litres of petrol every 10 days at a discount of Rs100 per litre.

10 litres of petrol every 10 days at a discount of Rs100 per litre.

He said the scheme had attracted more than 15 million unique registrations, adding that beneficiaries were increasingly using the facility.

The minister said around Rs27 billion had so far been provided in relief through the scheme.

He said petrol pumps were reimbursed the following day for fuel sold at subsidised rates to motorcyclists, rickshaw and Qingqi users, and owners of vehicles with engines up to 800cc.