Petrol Rises to Rs391.30 as Diesel Drops to Rs408.53

Pakistan's federal government has raised the ex-depot price of petrol while lowering the rate of high-speed diesel for the three-day period beginning September 26. The latest adjustment increases petrol by Rs2.02 per litre and reduces diesel by Rs3.59 per litre, giving motorists and transport operators a mixed change in fuel costs.

Under the revised rates, petrol will cost Rs391.30 per litre, up from Rs389.28. High-speed diesel has been reduced to Rs408.53 per litre from Rs412.12. The new prices are scheduled to remain effective through September 28 before the next review under the petroleum pricing mechanism.

The Oil and Gas Regulatory Authority calculated the revision using movements in the international petroleum market along with factors including benchmark product rates, premiums and other associated costs. The changes were subsequently reflected in the government's latest petroleum pricing decision.

The adjustment follows another reduction implemented in the preceding review. Petrol had previously been lowered by 84 paisas to Rs389.28 per litre, while high-speed diesel had been cut by Rs2.63 to Rs412.12. The latest decision therefore reverses part of the earlier relief for petrol users while extending the downward movement in diesel prices.

International crude prices were moving lower as the domestic revision was announced. Brent crude fell 1.3% to $105.26 a barrel, while West Texas Intermediate declined 1.9% to $92.78. For the week, however, the two benchmarks showed different trends, with Brent still higher and WTI recording a sizeable decline.

Global energy markets remain sensitive to developments in the Middle East. Expectations of possible progress toward reducing tensions between the United States and Iran have placed downward pressure on crude prices, while continuing attacks affecting Saudi Arabia have kept concerns about regional supply disruptions in focus. Those competing factors have contributed to continued volatility in international petroleum markets.

For Pakistan, changes in global oil prices are important because imported petroleum products have a direct bearing on domestic fuel costs, transport expenses and the wider cost of moving goods. The petrol increase will immediately affect private motorists, motorcycles and other petrol-powered transport, while the diesel reduction may provide some relief to commercial transport and sectors that depend heavily on HSD.

Consumers and businesses will now watch the next pricing review after September 28 to see whether international oil-market movements translate into further changes at local pumps. The direction of the next adjustment will depend on global benchmark prices and other components used in the petroleum pricing formula during the review period.