Govt increases petrol by Rs2.02, cuts diesel by Rs3.59 till Sept 28

The federal government on Friday increased the price of petrol by Rs2.02 per litre, while decreasing the price of high-speed diesel (HSD) by Rs3.59 per litre till September 28. According to a notification issued by the Petroleum Division, the price of petrol was fixed at Rs391.30 per litre, while HSD would cost Rs408.53 per litre from September 26 to September 28. The latest revision comes a day after the government decreased the price of petrol and HSD by 84 paisas and Rs2.63 per litre, respectively, for September 25. Read: Govt decreases petrol by 84 paisas, HSD by Rs2.63 for Sept 25 On July 17, the government announced a new pricing mechanism under which petroleum product prices would be reviewed and notified daily, replacing the weekly pricing mechanism, as renewed tensions between the United States and Iran continued to drive volatility in global oil markets and raise concerns over fuel supplies. Earlier this month, PM Shehbaz announced a special relief scheme offering Rs100 per litre off petrol for motorcycles, three-wheeler rickshaws and cars with engines up to 800cc, in an attempt to shield lower-income consumers from the impact of rising petroleum prices. Under the proposal, an estimated 11.8 million beneficiaries would be covered. Around 10 million two-wheeler users and 800,000 three-wheeler users would be entitled to relief on 20 litres of fuel per month, translating into a maximum monthly benefit of Rs2,000 per beneficiary. Another one million users of cars up to 800cc would receive relief on 30 litres per month, providing them with a maximum benefit of Rs3,000 each. On Sept 17, the government reintroduced austerity and fuel conservation measures amid rising fuel prices, tightening business operating hours and restricting public events. Under the measures, notified with immediate effect, shops, markets, shopping malls, bazaars, departmental stores, grocery stores, general stores and kiryana shops would close by 9pm throughout the week, according to a notification issued by the Cabinet Division. Marriage halls, marquees and other commercial venues hosting festive events would close by 10pm, while restaurants, cafes, eateries, food outlets and standalone fruit and vegetable shops would be allowed to operate until 11pm. Takeaway and home delivery services would remain exempt from the timing restrictions. Global geopolitical developments continue to pose significant risks. International oil prices are influenced by decisions taken by OPEC+, conflicts in the Middle East, sanctions on oil-producing nations, and disruptions in critical shipping routes such as the Strait of Hormuz and the Red Sea. Any interruption in these supply chains can immediately increase crude oil prices and freight costs. Since Pakistan imports the majority of its petroleum requirements, these developments quickly translate into higher domestic fuel prices. Oil prices fell about 3% on Friday, on mounting hopes for a truce between the US and Iran, even as traders worried that increasing attacks against Saudi Arabia by Houthi fighters could disrupt supply from the Middle Eastern producer. Brent futures fell $2.96, or 2.8%, at $103.64 a barrel by 12:12 pm EDT (1612 GMT). West Texas Intermediate (WTI) crude fell $2.86, or 3.0%, ​to $91.75. US and Iranian negotiators in New York are exploring a ​phased path out of war that would involve Tehran reopening the Strait of Hormuz and Washington lifting its economic ⁠blockade of Iran, sources close to the talks said. In the Middle East, however, Saudi, Turkish and Pakistani military chiefs are to discuss help for Saudi ​Arabia as it faces attacks by Yemen's Iran-aligned Houthis. "Diplomatic hopes are essentially helping oil prices weather the latest military strikes in the Middle East, with ​crude trading moderately softer despite the attacks," said Tim Waterer, chief analyst at KCM Trade.