Pakistan cuts petrol price by Rs1.93 and diesel by Rs4.21

The federal government cut the price of petrol by Rs1.93 per litre and high-speed diesel by Rs4.21 per litre for September 24, according to a notification issued by the Petroleum Division. Petrol was fixed at Rs390.12 per litre and HSD at Rs414.75 per litre for Thursday. The revision follows one a day earlier, when the government reduced petrol by Rs1.7 per litre and HSD by Rs3.12 per litre.

On 17 July the government announced a new pricing mechanism under which petroleum product prices are reviewed and notified daily, replacing the weekly system, as renewed tension between the United States and Iran drove volatility in global oil markets and raised 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. The government estimated 11.8 million beneficiaries: about 10 million two-wheeler users and 800,000 three-wheeler users would receive relief on 20 litres a month, a maximum monthly benefit of Rs2,000 each, while a further one million owners of cars up to 800cc would receive relief on 30 litres a month, up to Rs3,000 each. On 17 September the government reintroduced austerity and fuel conservation measures, ordering shops, markets, shopping malls, bazaars and grocery stores to close by 9pm throughout the week, marriage halls and marquees by 10pm, and restaurants, cafes and food outlets by 11pm, with takeaway and home delivery services exempt.

International oil prices are influenced by decisions taken by OPEC+, conflicts in the Middle East, sanctions on oil-producing nations and disruptions to shipping routes such as the Strait of Hormuz and the Red Sea. Because Pakistan imports the majority of its petroleum requirements, such developments pass quickly into domestic pump prices.

Brent crude rose more than 3% on Wednesday, rebounding from a near two-week low after five straight sessions of declines. "Saudi Arabia is acting, not waiting," said Phil Flynn, senior analyst at Price Futures Group. He said that after Houthi hits on the East-West pipeline forced a shutdown of Yanbu loadings, Aramco loaded about 14 million barrels of crude onto seven VLCCs inside the Gulf, and that satellite and tracker data showed Saudi oil moving through Hormuz at an average of about 2.9 million barrels a day over the last six days, up from roughly 700,000 barrels a day in August. Iranian President Masoud Pezeshkian told the UN that Tehran would never surrender to the United States but still believed in diplomacy, a day after President Donald Trump threatened to "annihilate" Iran.