Govt cuts petrol price by Rs3.19 per litre, ups high-speed diesel rate by Rs2.25

Govt cuts petrol price by Rs3.19 per litre, ups high-speed diesel rate by Rs2.25

The government on Tuesday reduced the price of petrol by Rs3.19 per litre and increased that of high-speed diesel (HSD) by Rs2.25. Following the revision, petrol will retail at Rs376.06 per litre, while HSD will cost Rs398.07 per litre. The government continues to levy Rs114 per litre in taxes and duties on petrol and Rs100 per litre on diesel. According to the Petroleum Division’s notification, the new prices are applicable for Oct 28 (Wednesday). Earlier today, Planning Minister Ahsan Iqbal said that a joint committee of the Jamaat-i-Islami (JI) and the government will be formed to consider the expansion of the fuel relief scheme in the wake of the JI’s demands for the abolition of the petroleum levy. He was addressing a press conference in Islamabad after JI chief Hafiz Naeemur Rehman met with Prime Minister Shehbaz Sharif to discuss his party’s demand to provide relief to the public. For his part, Rehman declared that his party would march to Islamabad in protest of the petroleum levy in mid-November if the government did not announce any major relief by then. “The prime minister and JI emir agreed that they share one purpose and intent: they want to reduce the difficulties of the public,” Iqbal said in his press briefing. “However, for this, we will have to adopt a path that is durable, sustainable, and the cost of which we can afford.” On Friday, the Pakistan Petroleum Dealers Association had urged consumers not to resort to panic buying, as excessive purchases could create market distortions. The same day, senators raised concerns over fuel supply even after Minister of State for Finance and Revenue Bilal Azhar Kayani said that there were no supply issues. PPP’s Sherry Rehman questioned petrol availability for December and Opposition Leader Raja Nasir Abbas warned of a bleak situation amid heightening Middle East tensions. The price of HSD has come down from a peak of Rs520.35 recorded on April 3. Its price had started rising from Rs281 per litre after the US-Iran war broke out on Feb 28. The petrol price had peaked at Rs458.41 on April 3 after beginning its upward trajectory from Rs266 in the first week of March. Meanwhile, the government has reintroduced a raft of austerity measures in response to rising fuel prices amid the ongoing Middle East conflict. Under these measures, markets are required to close by 9pm, and fuel allocations for official vehicles have been cut by 50 per cent for three months. On Sept 13, PM Shehbaz also announced a “relief scheme” for users of motorcycles, autos and vehicles of up to 800cc to “alleviate the burden” of rising global oil prices. Previously, on July 17, Petroleum Minister Ali Pervaiz Malik announced that fuel prices would now 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, alongside measures for the conservation of fuel amid possible oil supply disruptions due to the ongoing conflict in the Middle East. The federal government in April also announced targeted relief measures to provide subsidised fuel. The petroleum minister stated that the cabinet and the prime minister had decided to give the Oil and Gas Regulatory Authority (Ogra) the responsibility of deciding fuel prices on a daily basis based on international market trends. Petrol is mainly used in private transport, small vehicles, rickshaws and two-wheelers, and changes in its price affect the middle and lower-middle classes. Similarly, changes in diesel prices also impact the public at large, as it is mainly used in the heavy transport sector, power plants and large generators. Petrol and HSD are the major revenue earners, with monthly sales of about 700,000 to 800,000 tonnes, compared to just 10,000 tonnes of monthly demand for kerosene.