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Pakistan cuts petrol by Rs 5.16 and diesel by Rs 7.69 a litre
The second cut since Friday takes petrol to Rs 381.14, though Brent crude is still hovering around $110 a barrel as Gulf attacks keep oil markets on edge.
Key points
- Petrol falls to Rs 381.14 a litre and high-speed diesel to Rs 389.27 from Tuesday.
- Pakistan has fixed fuel prices daily since 17 July, citing volatile oil markets.
- Brent crude was near $110 a barrel on Monday.
Pakistan has cut the price of petrol by Rs 5.16 a litre and high-speed diesel by Rs 7.69 for Tuesday, the second reduction since Friday under the daily pricing system the government adopted in July to cope with swinging oil prices.
The Petroleum Division’s notification, issued on Monday, sets petrol at Rs 381.14 a litre and diesel at Rs 389.27. In the previous revision, which applied from 17 to 19 October, petrol had come down by Rs 3.93 while diesel was left unchanged.
Islamabad switched from weekly to daily fuel price reviews on 17 July, citing renewed tension between the United States and Iran and volatile global markets. Pakistan imports most of its petroleum, so swings in crude prices feed quickly into what motorists pay.
Relief at the pump is still limited. Brent crude rose 0.15% to $110.03 a barrel on Monday after falling more than $3 earlier in the session, and it touched a five-month high last week. Houthi attacks on Saudi energy and airport facilities and a tanker explosion in the Strait of Hormuz are keeping prices high. “Flows remaining below pre-conflict levels continue to support prices,” said Giovanni Staunovo, an analyst at UBS.
The government is also running a targeted subsidy announced by Prime Minister Shehbaz Sharif on 13 September, which takes Rs 100 a litre off petrol for motorcycles, three-wheelers and cars with engines up to 800cc. About 1.18 crore people are expected to benefit, with monthly caps of Rs 2,000 for two- and three-wheelers and Rs 3,000 for small cars.
Austerity rules introduced on 17 September also remain in force: shops, markets and malls must close by 9 pm and wedding halls by 10 pm, while restaurants may stay open until 11 pm.