Petrol Price Cut by Rs1.49, Diesel by Rs2.73 in Pakistan

Petrol and diesel have become cheaper in Pakistan for the second day in a row. On Tuesday, September 29, the Oil and Gas Regulatory Authority (OGRA) cut the price of petrol by Rs1.49 per litre and the price of high speed diesel by Rs2.73 per litre. The new rates apply from midnight for the next 24 hours.

After the cut, petrol now costs Rs387.54 per litre, down from Rs389.03. Diesel now costs Rs402.24 per litre, down from Rs404.97.

This came one day after another cut. On Monday, petrol fell by Rs2.27 and diesel by Rs3.56 per litre. Taken together, the two cuts have brought petrol down by Rs3.76 and diesel down by Rs6.29 per litre.

Diesel Falls for the Eighth Time in a Row

Diesel has now become cheaper in eight revisions in a row. Its highest price was Rs424.92 per litre, in the rates announced on September 17. Since then, it has dropped by Rs22.68 per litre.

Petrol has moved up and down more. It reached Rs393.75 on September 21, its highest level since daily pricing began. It is now Rs6.21 lower than that. But the fall has not been smooth, as petrol went up by Rs2.02 on Friday, September 25, before falling again this week.

The drop in diesel matters for ordinary people. Diesel runs trucks, buses, tractors and factory machines. It is a key part of the cost of moving goods and running farms, so its price has a direct effect on transport fares and on inflation.

Still Much Higher Than in July

The recent cuts look small next to the bigger picture. Just before daily pricing started in July, petrol cost Rs310.71 and diesel Rs323.30 per litre. Even after this week's cuts, petrol is still Rs76.83 higher and diesel Rs78.94 higher per litre.

For a motorcyclist who fills five litres, the latest cut saves only about Rs7. Those five litres now cost Rs1,937.70. In mid July, the same amount cost about Rs384 less.

The government has linked the rise to the war and tension in the Middle East, which pushed world oil prices up. Pakistan buys most of its oil from abroad, so changes in world prices reach local petrol pumps quickly.

Rs100 Per Litre Relief for Bikes and Small Cars

To ease the burden, Prime Minister Shehbaz Sharif launched a special fuel relief scheme in mid September. It gives a discount of Rs100 per litre on petrol to users of motorcycles, rickshaws, Qingqis and cars with engines up to 800cc.

Motorcycle, rickshaw and Qingqi users get a Rs500 token once a week. After public complaints, the government removed the rule of buying at least five litres, so the token now works on any amount of petrol. Owners of cars up to 800cc get a token for 10 litres every 10 days, which means a discount of Rs1,000 each time.

People can register by sending their details by SMS to 9771, and the SMS is free. The SIM must be in the applicant's own name and linked to their CNIC. Bike and rickshaw users do not need to be the registered owner, but for cars only the owner can apply. By September 25, the government said 5.8 million people had registered.

How Daily Pricing Works and What Comes Next

The federal cabinet approved daily pricing on July 17, replacing the weekly system. OGRA now sets the price every working day without asking the prime minister. It uses the average world price of petrol and diesel over the last seven working days, then adds import costs and other charges.

OGRA will announce the next rates on Wednesday evening for Thursday. Prices can go up or down on any working day, but they do not change on Saturday and Sunday, so Friday's rates stay in place over the weekend. Whether the cuts continue will depend mainly on world oil prices and the situation in the Middle East.