The federal government reduced the price of petrol by Rs3.40 per litre and High-Speed Diesel (HSD) by Rs7.76 for November 3, bringing their prices to Rs374.51 and Rs395.20 per litre, respectively, even as international oil prices rose following reports of a US attack on Iran’s Qeshm Island.
Brent crude futures gained 48 cents, or 0.5 percent, to reach $105.25 per barrel in early trading on Tuesday, while Unites States (US) West Texas Intermediate (WTI) crude rose 47 cents, also 0.5 percent, to $96.93 per barrel.
According to the Oil and Gas Regulatory Authority (OGRA) notification, the revised petroleum prices took effect on November 3. The government continued to charge Rs114 per litre in taxes and duties on petrol and Rs100 per litre on diesel.
The latest reduction came under an arrangement in which oil refineries will contribute to the petroleum levy by bearing a cumulative monthly impact of Rs15 billion. Under this arrangement, consumers will receive a Rs14.71 per litre reduction in petrol prices.
Petroleum Minister Ali Pervaiz Malik and Information Minister Attaullah Tarar announced the arrangement during a press conference in Islamabad.
Malik thanked the refineries for increasing their throughput to support consumers, saying that they had also earned profits from the additional throughput over the previous three months.
He said that the refineries agreed to support the public after the government approached them, adding that their contribution helped prevent a Rs15 per litre increase in petrol prices that the government had expected on Friday.
The fuel price revision also came amid Jamaat-i-Islami (JI)’s demand for the abolition of the petroleum levy. On October 27, JI chief Hafiz Naeemur Rehman met Prime Minister (PM) Shehbaz Sharif in Islamabad to discuss the demand.
Both sides agreed to establish a joint committee to examine ways to expand the existing fuel relief scheme for motorcycle owners, rickshaw users and owners of vehicles with engines up to 800cc. The government introduced the scheme on September 17.
Meanwhile, the government has reintroduced austerity measures amid rising fuel prices and the ongoing Middle East conflict. The measures require markets to close by 9pm and reduce fuel allocations for official vehicles by 50 percent for three months.
The latest cuts came after petrol and HSD prices reached Rs458.41 and Rs520.35 per litre, respectively, on April 3. Petrol had risen from Rs266 per litre in the first week of March, while diesel increased from Rs281 per litre after the US-Iran war began on February 28.
