No relief for motorists as petrol and diesel prices see slight cut
The government has reduced the price of petrol by Rs1.65 per litre and high-speed diesel (HSD) by Re0.88 per litre. The small reduction is unlikely to bring major relief to motorists facing high fuel costs.
After the revision, petrol will be available at Rs389.14 per litre, while HSD will cost Rs424.04 per litre. The revised rates will remain effective from September 19 to September 21, according to the notification.
Daily fuel 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 international oil prices to reach consumers more quickly.
Petroleum Minister Ali Pervaiz Malik said the daily prices are calculated using a seven-day average of international market prices. He said the approach is in line with international practice.
Global oil market remains unsettled
The government moved towards a daily fuel price review system amid continued volatility in global oil markets. Renewed tensions in the Middle East have raised concerns about energy supplies and international oil prices.
The Strait of Hormuz has remained a major concern because of its importance to global energy shipments. Disruptions or tensions around the route can quickly affect international oil markets and, in turn, fuel prices in Pakistan.
From fortnightly to daily reviews
The government had earlier introduced a weekly fuel price review system after the conflict in the Middle East began on February 28. Before that change, petroleum prices were generally revised every two weeks.
The latest system allows fuel prices to respond more frequently to movements in international markets. For motorists, however, frequent changes could mean that petrol and diesel prices may continue to move up or down more often.
The latest reduction is small compared with the overall cost of fuel. Motorists may therefore see only limited savings from the new rates.
Daily price reviews could make domestic fuel prices respond faster to global market changes. The main impact will depend on how international oil prices and energy supply conditions develop.
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