The government has reduced petrol prices by Rs1.49 per litre and high-speed diesel (HSD) prices by Rs2.73 per litre.

Petrol will now cost Rs387.54 per litre. HSD will sell at Rs402.24 per litre.

The new prices take effect from September 30, according to a Petroleum Division notification.

The government continues to charge Rs114 per litre in taxes and duties on petrol. The levy on diesel stands at Rs100 per litre.

HSD prices have fallen sharply from their April 3 peak of Rs520.35 per litre. The price had risen from Rs281 per litre after the US-Iran conflict began on February 28.

Petrol also reached a peak of Rs458.41 per litre on April 3. Its price had started rising from Rs266 in the first week of March.

Pakistan plans Rs6.86tr additional borrowing in FY27

The government has also revived several austerity measures to conserve fuel amid the ongoing Middle East conflict.

Under the measures, markets must close by 9pm. The government has also cut fuel allocations for official vehicles by 50 per cent for three months.

Prime Minister Shehbaz Sharif announced a fuel relief scheme on September 13. The scheme targets motorcycles, rickshaws and vehicles with engines up to 800cc.

Deputy Prime Minister and Foreign Minister Ishaq Dar reviewed the scheme on September 29. He said the programme reflected a “whole of government” approach.

Officials said about 7.60 million people have registered for the scheme so far. The token redemption process has also entered its second week.

Around 7.71 million tokens have been redeemed, according to the meeting.

The government shifted to daily fuel price adjustments on July 17. Petroleum Minister Ali Pervaiz Malik said the move would help respond to changes in international oil prices.

Before the daily system, the government announced weekly fuel price revisions from early March.

Officials introduced the changes as global oil prices remained volatile amid the Middle East conflict. The government also announced targeted fuel subsidies in April.

The cabinet and prime minister assigned the Oil and Gas Regulatory Authority (Ogra) responsibility for daily fuel price decisions. Ogra bases the revisions on international market trends.

Petrol mainly serves private vehicles, motorcycles, rickshaws and small transport. Price changes directly affect household transport costs.

Diesel remains crucial for heavy transport, power plants and large generators. Changes in HSD prices therefore affect transport and other sectors.

Petrol and HSD remain the government’s main fuel revenue sources. Monthly sales of both products range between 700,000 and 800,000 tonnes.

Kerosene demand remains much lower. Monthly consumption stands at around 10,000 tonnes.