Petrol up 88 paisas, diesel down Rs1.88 for October 6 in Pakistan
Pakistan's federal government raised the price of petrol by 88 paisas per litre and cut the price of high-speed diesel by Rs1.88 per litre for October 6, according to a notification issued by the Petroleum Division. Petrol was fixed at Rs393.64 per litre and HSD at Rs397.76 per litre for Tuesday. The revision follows the previous one, under which the government raised petrol and diesel by Rs2.1 and 30 paisas per litre respectively for October 3 to October 5. Fuel prices are a sensitive input into transport costs and headline inflation in a country that imports the majority of its petroleum requirement.
The government moved to a daily pricing mechanism on July 17, replacing the weekly system, as renewed tensions between the United States and Iran continued to drive volatility in global oil markets and raise concerns over fuel supplies. On September 13, PM Shehbaz announced a relief scheme offering Rs100 per litre off petrol for motorcycles, three-wheeler rickshaws and cars with engines up to 800cc. Under the proposal, an estimated 11.8 million beneficiaries would be covered: about 10 million two-wheeler users and 800,000 three-wheeler users would be entitled to relief on 20 litres of fuel a month, a maximum monthly benefit of Rs2,000 each, while one million users of cars up to 800cc would receive relief on 30 litres a month, up to Rs3,000 each.
On September 17 the government reintroduced austerity and fuel conservation measures amid rising prices, tightening business operating hours and restricting public events with immediate effect. Under the Cabinet Division notification, shops, markets, shopping malls, bazaars, departmental stores, grocery stores, general stores and kiryana shops must close by 9pm throughout the week; marriage halls, marquees and other commercial venues hosting festive events by 10pm; and restaurants, cafes, eateries, food outlets and standalone fruit and vegetable shops by 11pm. Takeaway and home delivery services were exempted from the timing restrictions.
Global developments remain the main risk to the domestic price path. International oil prices are influenced by OPEC+ decisions, conflicts in the Middle East, sanctions on oil-producing nations and disruptions to critical shipping routes such as the Strait of Hormuz and the Red Sea, and any interruption to those supply chains can immediately raise crude prices and freight costs before feeding through to domestic fuel prices. Oil prices edged lower on Monday after crude exports from the Middle East increased and the Group of Seven nations pledged to boost supplies, with Brent crude futures down $1.10, or 1.08%, at $101.15 a barrel and US West Texas Intermediate down 89 cents, or 0.98%, at $90.22. Tamas Varga, an analyst at PVM Oil Associates, said a truce in the Middle East remained elusive, and that renewed hostilities between Saudi Arabia and the Iran-backed Houthis would ensure that attacks on energy infrastructure and vessels continued, keeping the geopolitical risk premium at an elevated level.
