Govt cuts petrol and diesel prices but relief amounts to almost nothing

Fresh cut in fuel prices

The government has reduced the price of petrol by Rs1.93 per litre and high-speed diesel (HSD) by Rs4.21 per litre. The reduction has been linked to changes in international oil prices.

After the latest revision, petrol will cost Rs390.12 per litre, while high-speed diesel will be available at Rs414.75 per litre. The new rates will take effect from September 24, according to a Petroleum Division notification.

Daily price review introduced

The Oil and Gas Regulatory Authority (OGRA) has started publishing daily petroleum prices on its website. The move is aimed at improving transparency and allowing changes in global oil prices to reach consumers more quickly.

Petroleum Minister Ali Pervaiz Malik said the daily rates are calculated using a seven-day average of international oil prices. He said the method is in line with practices followed in international markets.

Global oil market remains under pressure

The government moved towards a daily fuel price review as global oil rates remained volatile amid renewed tensions in the Middle East. The situation has also raised concerns about possible disruptions to energy supplies through the Strait of Hormuz.

The government had earlier shifted to a weekly review system after the Middle East conflict began on February 28. The conflict affected the Strait of Hormuz, a major route for global energy supplies.

Previous system was fortnightly

Tensions increased after a fragile June truce between Tehran and Washington collapsed. The renewed tensions have raised concerns about a wider conflict and possible disruptions to energy flows through the Strait.

Before the recent changes, petroleum prices were revised every two weeks. The new daily review system is intended to respond more quickly to movements in international oil prices.

The latest fuel price cut is relatively small compared with the current petrol and diesel rates. Consumers will get some relief, but the impact on household and transport costs may remain limited.

The new daily review system could make domestic fuel prices more closely reflect international market movements. However, future prices will still depend on global oil rates and developments affecting energy supplies.

Also read: ADB keeps Pakistan growth forecast at 3.7pc amid rising risks

Also read: Hajj, Umrah and work visa travellers get relief until October 10