Petrol rises Rs4.61 per litre, diesel gets cheaper

Petrol in Pakistan has been increased by Rs4.61 per litre while diesel prices have been reduced, Dawn reported on 21 September. The report, carried by the news aggregator Ua.News, did not provide the new per-litre prices for either fuel or state the size of the diesel cut.

The adjustment is part of the federal government's regular fortnightly fuel price review. Under this system, petrol and high-speed diesel rates are revised every two weeks after the government assesses movements in international crude oil prices and the rupee-dollar exchange rate. In Pakistan, fuel price changes are usually announced at the beginning and middle of each month, after the Oil and Gas Regulatory Authority works out import parity prices. Dawn's report did not say when the new rates took effect or provide the revised rates in rupees.

ProPakistani reported separately that global crude oil prices fell sharply on Tuesday, with Brent crude slipping below $100 a barrel, but Pakistani consumers were still waiting for that decline to reach the pump. According to ProPakistani, the lag reflects domestic taxes, the depreciation of the rupee and the country's fuel pricing mechanism, which does not pass international price movements straight through to consumers. Even with cheaper crude, the final price at the pump in Pakistan can move in a different direction because of these factors.

Fuel price adjustments are politically and economically sensitive in Pakistan because they feed directly into transport costs, food prices and inflation. Petrol users will pay more from the latest change, while diesel consumers may see some relief. The net effect for households and businesses will become clear only when the new per-litre rates are published. This is the latest in a series of fortnightly revisions that shape household budgets across the country.