Pakistan Cuts Fuel Prices and Expands Relief Scheme

The Government of Pakistan implemented two sets of petroleum price adjustments within 24 hours to address volatility in international markets. On September 18, the Oil and Gas Regulatory Authority of Pakistan initially lowered petrol prices by 43 paisas to Rs390.79 per litre while increasing high-speed diesel (HSD) by Rs3.47 to Rs424.92.

By the evening of September 18, the government issued a second notification reducing petrol by Rs1.65 and HSD by Rs0.88, setting new rates at Rs389.14 and Rs424.04 respectively for the period of September 19 to September 21. These shifts followed a sharp climb in petrol prices from Rs364.35 on September 9 to a peak of Rs391.22 on September 17. The Petroleum Division attributed these changes to fluctuations in Platts rates and international premiums.

To mitigate the impact of inflation, which the Pakistan Bureau of Statistics reported rose by 0.49% weekly due to fuel hikes, Prime Minister Shehbaz Sharif expanded the Prime Minister’s Fuel Relief Scheme. The program now includes motorcycles, rickshaws, and Qingqi rickshaws registered on or after January 1, 2006, offering eligible beneficiaries a discount of Rs100 per litre.