The Pakistani government reduced the price of petrol by Rs2 per litre on Friday, marking the ninth consecutive decrease in fuel costs. High-speed diesel (HSD) prices remain unchanged at Rs360 per litre.
According to a notification from the Oil and Gas Regulatory Authority (Ogra), the new petrol rate of Rs330 per litre takes effect from Saturday, November 14, through Monday, November 16. The government continues to collect Rs114 per litre in taxes and duties on petrol, while the levy on diesel stands at Rs100 per litre.
The current price reduction is supported by an arrangement announced on November 2, where oil refineries are contributing Rs15 billion to the petroleum levy. This financial structure allows for a Rs14.71 per litre reduction in petrol prices for consumers.
The government also maintains the Fuel Relief Scheme, which launched on September 17. The initiative provides subsidized fuel to owners of motorcycles, rickshaws, and vehicles with engine capacities up to 800cc to mitigate the impact of global fuel price fluctuations.
The administration shifted to a daily fuel pricing model on July 17 in response to international market instability caused by the ongoing conflict in the Middle East. This strategy aims to protect the local economy from extreme volatility, with OGRA adjusting ex-depot prices every 24 hours.
These daily adjustments follow a period of high price volatility earlier this year. HSD reached a peak of Rs520.35 per litre on April 3, while petrol peaked at Rs458.41 on the same date. These highs followed a sharp upward trajectory that began after the US-Iran conflict broke out on February 28.
The reduction in fuel costs has led to administrative action at the local level to lower transportation expenses for the public. In Sargodha, the district administration reached an agreement with transporters on November 11 to cut fares by 12 percent.
"The fare reduction aimed to pass on the benefits of lower petroleum product prices to passengers and provide them relief in transportation expenses," said Malik Muhammad Tahir, Secretary of the District Regional Transport Authority. Officials have warned that legal action will be taken against any transporters who fail to comply with the new fare schedule.
Why are fuel prices being adjusted on a daily basis?
The government transitioned to daily adjustments on July 17 to manage the effects of global oil supply disruptions. This shift allows the state to respond more rapidly to international price fluctuations caused by the conflict in the Middle East.
Which vehicles are covered under the fuel relief scheme?
The Fuel Relief Scheme provides subsidies to owners of motorcycles, rickshaws, and small cars with engines up to 800cc. The program was established on September 17 to assist middle- and lower-income households.
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