Petrol and diesel prices in Pakistan fall slightly again
Petrol and HSD prices reduced
The federal government has reduced the petrol price by Re0.14 per litre and high-speed diesel (HSD) by Rs1.89 per litre. After the reduction, petrol will cost Rs387.40 per litre, while HSD will be available at Rs400.35 per litre.
The new rates will take effect from October 1, according to a notification issued by the Petroleum Division. The government said the changes were made after reviewing movements in international oil prices.
Daily fuel prices now being published
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 prices are calculated using a seven-day average of international market prices. He said the method is in line with international practice.
Why did the government change the system
The government decided to move towards daily fuel price reviews because of continued volatility in global oil markets. Renewed tensions in the Middle East have created uncertainty around international energy supplies.
The government had earlier moved to a weekly review system after the Middle East conflict began on February 28. The conflict followed attacks by Israel and the United States on Iran, after which Tehran closed the Strait of Hormuz, a major route for global energy supplies.
Fuel rates face global pressure
The Strait of Hormuz has remained an important part of the global oil supply network. Before the conflict, around a fifth of global energy supplies passed through the waterway.
Tensions increased after a fragile June truce between Tehran and Washington collapsed. The renewed tensions raised concerns about wider conflict and possible disruption to energy supplies through the strait.
The latest fuel reduction is small for petrol but larger for HSD. At the same time, the daily pricing system could make local fuel rates respond more quickly to international market changes.
Pakistan had previously revised petroleum prices every two weeks before moving to a weekly system. The latest change means international oil market movements can now have a more direct and frequent impact on domestic fuel prices.
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