Petrol and diesel price cut brings little relief in Pakistan
After the latest revision, petrol will cost Rs389.28 per litre while HSD will be available at Rs412.12.
The Petroleum Division issued a notification confirming the revised fuel prices. The new rates will apply from September 25.
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 international oil price changes 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 method is in line with practices followed in international markets.
Global oil market remains volatile
The latest fuel price change comes amid continued volatility in international oil prices linked to renewed tensions in the Middle East. The government decided to move towards a daily fuel price review mechanism as uncertainty continued to affect global energy markets.
The government had earlier introduced a weekly fuel price review after the Middle East conflict began on February 28. The conflict followed attacks by Israel and the United States on Iran, after which Tehran shut the Strait of Hormuz, an important route for global energy supplies.
Fuel prices may change more quickly
Tensions increased after a fragile June truce between Tehran and Washington collapsed. The situation raised concerns about a wider conflict and possible disruption to energy flows through the Strait of Hormuz.
Before the weekly system was introduced, petroleum prices were revised every two weeks. The shift towards more frequent reviews means changes in international oil prices can be reflected in domestic fuel rates more quickly.
The latest reduction gives consumers a small decrease in petrol and diesel prices. However, the new daily review system means local fuel prices may respond more quickly to changes in the international oil market.
The seven-day average is intended to reduce the impact of sudden daily movements in global oil prices. Future petrol and diesel rates will depend largely on international prices and other factors used in the government’s pricing mechanism.
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