Govt Cuts Petrol And Diesel Prices For Oct 1

The federal government has announced a small reduction in petroleum prices, lowering petrol by Re0.14 per litre and high-speed diesel by Rs1.89 per litre for Oct 1. The latest revision comes as consumers continue to face elevated transport and energy costs after months of volatility in global oil markets.

After the adjustment, petrol will be sold at Rs387.40 per litre, while high-speed diesel will be priced at Rs400.35 per litre. The change is modest, but it remains closely watched because petrol and diesel prices directly affect household budgets, public transport fares, freight charges and broader inflation expectations.

According to the petroleum authorities’ notification, the revised rates apply from Thursday, Oct 1. The government is still collecting Rs114 per litre in taxes and duties on petrol and Rs100 per litre on diesel, meaning a major share of the retail price continues to come from levies rather than only the base fuel cost.

High-speed diesel had earlier reached Rs520.35 per litre on April 3 after rising from Rs281 per litre following the outbreak of the US-Iran conflict in late February. Petrol had also climbed sharply, reaching Rs458.41 per litre on April 3 after beginning an upward trend from Rs266 in the first week of March.

The fuel price pressure prompted the government to bring back several austerity measures. Markets were ordered to close by 9pm, while fuel allocations for official vehicles were reduced by 50 per cent for three months as part of broader conservation efforts linked to rising energy costs and supply concerns.

Prime Minister Shehbaz Sharif also announced a relief scheme earlier this month for users of motorcycles, rickshaws and vehicles up to 800cc. The initiative was described as an effort to ease the impact of high fuel prices on lower-income and middle-income commuters who rely heavily on smaller vehicles for daily travel.

Deputy Prime Minister Ishaq Dar reviewed the subsidy scheme on Sept 29 and said its implementation reflected coordination across several government departments and regulators. Officials said around 7.60 million registrations had been completed, while 7.71 million tokens had been redeemed as the token redemption process entered its second week.

The petroleum ministry had previously said fuel prices would be set on a daily basis because of fluctuations in international markets. Petrol is widely used in private transport, two-wheelers and rickshaws, while diesel is central to heavy transport, power generation and freight movement, making even small changes important for the wider economy.