The federal government has decided to decrease the prices of motor spirit (MS) petrol and High-speed diesel (HSD). According to a notification by the Oil and Gas Regulatory Authority (Ogra), petrol will retail at Rs. 362.00 per litre and HSD will cost Rs. 387.81 per litre, applicable for Thursday, November 5.
This marks the third consecutive sharp reduction in fuel prices since the government reverted to a new price determination formula. On Tuesday, the price of petrol was cut by Rs. 5.45 per litre to Rs. 369.06 per litre, while diesel was reduced by Rs. 3.68 to Rs. 391.52 per litre. The latest cut saw petrol drop by Rs. 7.06 per litre and diesel by Rs. 3.71 per litre.
The price reductions follow a period of volatility. International oil prices fell under $100 on Wednesday as investors awaited Washington’s next move in the US-Israeli war with Iran after President Donald Trump’s Republican Party lost control of Congress in midterm elections. Brent futures were down $4.50, or 4.3 per cent, to $99.07 a barrel at 1619pm GMT (9:19pm, PKT), while US West Texas Intermediate crude futures were down $4.13, or 4.3pc, to $92.02.
The government continues to levy Rs114 per litre in taxes and duties on petrol and Rs100 per litre on diesel. However, under an arrangement announced on Monday for 30 days, oil refineries will contribute to the petroleum levy by bearing a cumulative impact of Rs15 billion. The government stated this would allow a Rs14.71 reduction in the petrol price at the consumer end.
During a press conference on Tuesday, Petroleum Minister Ali Pervaiz Malik stated that efforts were being made to introduce a similar system for liquefied petroleum gas (LPG). He also hinted at the latest reduction in fuel prices, saying “even better news will come before us”. Additionally, the government and Jamaat-i-Islami held talks to discuss possible relief to low-income citizens in petroleum prices and agreed to continue negotiations in the coming days.
The shift to daily pricing occurred on July 17, when the petroleum minister announced that fuel prices would be fixed on a daily basis due to fluctuations in international market prices following renewed hostilities between Iran and the US. Prior to this, the government had been announcing weekly revisions to fuel prices since early March.
Historical data shows that HSD prices rose from Rs281 per litre after the US-Iran war broke out on Feb 28, reaching a peak of Rs520.35 on April 3. Petrol prices began an upward trajectory from Rs266 in the first week of March, peaking at Rs458.41 on April 3.
In response to rising fuel prices amid the Middle East conflict, the government has reintroduced austerity measures, including closing markets by 9pm and cutting fuel allocations for official vehicles by 50pc for three months. On Sept 13, PM Shehbaz announced a “relief scheme” for users of motorcycles, autos and vehicles of up to 800cc to “alleviate the burden” of rising global oil prices.
Since the beginning of the daily fuel rates update, petrol has gone up by Rs. 51.29/litre and diesel by Rs. 64.51/litre.
TYPE: news
