The federal government has announced a reduction in the prices of petrol and high-speed diesel (HSD), as per a notification from the Oil and Gas Regulatory Authority (OGRA). Petrol prices have been lowered by Rs0.14 per litre, while the cost of HSD has decreased by Rs0.89 per litre.
Following these adjustments, the new retail price for petrol is set at Rs387.40 per litre, and HSD will now be available at Rs400.35 per litre. These revised rates will come into effect from midnight and will remain valid until further updates are issued.
Notably, the price of HSD has dropped significantly from its peak of Rs520.35 recorded on April 3. This followed a sharp rise from Rs281 per litre after the escalation of the US-Iran conflict on February 28. Similarly, petrol prices had surged to Rs458.41 per litre on April 3, after increasing from Rs266 in early March.
In response to the ongoing rise in international fuel prices, the government has implemented austerity measures. These include a ban on purchasing durable goods for government use, except IT equipment, and a shift toward teleconferencing for official meetings. Additionally, markets are now directed to close by 9 pm, and fuel allocations for official vehicles have been cut by 50 percent for the next three months.
In a significant development, Prime Minister Shehbaz Sharif has introduced a fuel relief scheme targeting motorcycles, rickshaws, and vehicles with engines up to 800cc. This initiative aims to alleviate the impact of rising global oil prices on the general public.
The international fuel market has been disrupted due to conflicts involving the US, Israel, and Iran, particularly affecting oil and gas exports through the Strait of Hormuz. Moreover, ongoing hostilities between Saudi Arabia and Iran-backed Houthi forces have posed additional threats to maritime trade via the Red Sea.
Domestically, the government is under pressure to align local petrol and diesel prices with international oil market fluctuations. Jamaat-e-Islami leader Hafiz Naeemur Rehman has urged the government to reduce fuel costs, eliminate the petroleum levy, and cut state expenditures. He has warned of continuing protest marches if these demands are not met and announced a nationwide signature campaign to support these calls.
Petroleum Minister Ali Pervaiz Malik has assured the public that the government plans to maintain the petrol subsidy scheme for up to ten months if necessary. Speaking in Lahore, Malik acknowledged the public’s hardships and pledged to pass on any reductions in international oil prices to consumers. He also revealed that the government is currently spending between Rs35 billion and Rs40 billion monthly on this subsidy scheme.
