Petrol Cut by Another Rs5.16 Per Litre to Rs381.14, Diesel Down Rs7.69 to Rs389.27 From October 20
ISLAMABAD: There is another cut in the petrol price in Pakistan. The federal government on Monday reduced petrol by Rs5.16 per litre, fixing the new rate at Rs381.14, while high-speed diesel came down by a larger Rs7.69 to Rs389.27 per litre. According to the Petroleum Division’s notification, the revised prices take effect on Tuesday, October 20.
Second relief in four days
The cut follows close behind the previous one. For October 17 to 19, petrol had already been reduced by Rs3.93 per litre, though diesel was left unchanged that time; now both fuels have moved down together. Since July 17, fuel prices in Pakistan are no longer set weekly. Petroleum Minister Ali Pervaiz Malik announced that month that the Oil and Gas Regulatory Authority would fix prices daily, because renewed hostilities between the United States and Iran had made international oil markets too volatile for a weekly formula.
Cheaper fuel, unchanged taxes
The relief, however, comes with the tax burden intact. The government continues to levy Rs114 per litre in taxes and duties on petrol and Rs100 per litre on diesel. Today’s rates are still a long way from the April crisis, when petrol peaked at Rs458.41 on April 3 and diesel touched Rs520.35. After the US-Iran war broke out on February 28, petrol had climbed from Rs266 in the first week of March, while diesel rose from Rs281.
What it means at the pump
Petrol mostly runs motorbikes, rickshaws and small cars, so its price lands directly on middle and lower-middle income households. Diesel powers heavy transport and generators, and a cut there can soften freight costs and, eventually, the price of goods moved around the country. Since September 13 the government has also run a special relief scheme offering Rs100 per litre off petrol for motorcycles, three-wheeler rickshaws and cars of up to 800cc, covering an estimated 11.8 million beneficiaries. Austerity measures remain in place alongside it: markets close by 9pm and fuel allocations for official vehicles have been halved for three months.
