Pakistan's federal government on Monday cut the price of petrol by Rs3.4 a litre and high-speed diesel (HSD) by Rs7.76 a litre for November 3. According to a statement from the Oil and Gas Regulatory Authority (OGRA), petrol now costs Rs374.51 a litre and HSD Rs395.2.
The cut came hours after the government said oil refineries would absorb a burden of about Rs15 billion a month, allowing petrol to be sold up to Rs15 a litre below the global market price. Oil markets have swung sharply during the US-Israeli war on Iran, feeding directly into fuel costs in Pakistan.
On July 17 the government replaced weekly fuel pricing with a system under which petroleum prices are reviewed and notified daily. On September 13 Prime Minister Shehbaz Sharif announced a relief scheme offering Rs100 a litre off petrol for motorcycles, rickshaws and cars of up to 800cc, covering an estimated 11.8 million beneficiaries.
Fuel conservation measures introduced on September 17 remain in force, requiring shops and markets to close by 9pm, wedding halls by 10pm and restaurants by 11pm. The larger cut in diesel is expected to offer some relief to the transport and farm sectors.