Govt decreases petrol by Rs1.7, HSD by Rs3.12 for Sept 23

Read:Govt increases petrol price by Rs4.61, cuts diesel by Rs1.96 for Sept 22On July 17, the government announced a new pricing mechanism under which petroleum product prices would be reviewed and notified daily, replacing the weekly pricing mechanism, as renewed tensions between the United States and Iran continued to drive volatility in global oil markets and raise concerns over fuel supplies.

On September 18, in a bid to provide relief to the public, Prime Minister Shehbaz Sharif directed the immediateinclusionof 20-year-old motorcycles, rickshaws and Qingqi rickshaws in the Prime Minister Fuel Relief Scheme, the Prime Minister's Office (PMO) said.

The statement further added that all motorcycles, rickshaws and Qingqi rickshaws registered after January 1, 2006, would be eligible for registration in the Prime Minister Fuel Relief Scheme. On Sept 17, the government reintroduced austerity and fuel conservation measures amid rising fuel prices, tightening business operating hours and restricting public events.

Under the measures, notified with immediate effect, shops, markets, shopping malls, bazaars, departmental stores, grocery stores, general stores and kiryana shops would close by 9pm throughout the week, the Cabinet Division.

Marriage halls, marquees and other commercial venues hosting festive events would close by 10pm, while restaurants, cafes, eateries, food outlets and standalone fruit and vegetable shops would be allowed to operate until 11pm. Takeaway and home delivery services would remain exempt from the timing restrictions.

On September 13, PM Shehbazannounceda special relief scheme offering Rs100 per litre off petrol for motorcycles, three-wheeler rickshaws and cars with engines up to 800cc, in an attempt to shield lower-income consumers from the impact of rising petroleum prices. Under the proposal, an estimated 11.8 million beneficiaries would be covered.

Around 10 million two-wheeler users and 800,000 three-wheeler users would be entitled to relief on 20 litres of fuel per month, translating into a maximum monthly benefit of Rs2,000 per beneficiary. Another one million users of cars up to 800cc would receive relief on 30 litres per month, providing them with a maximum benefit of Rs3,000 each.

Global geopolitical developments continue to pose significant risks. International oil prices are influenced by decisions taken by OPEC+, conflicts in the Middle East, sanctions on oil-producing nations, and disruptions in critical shipping routes such as the Strait of Hormuz and the Red Sea.

Any interruption in these supply chains can immediately increase crude oil prices and freight costs. Since Pakistan imports the majority of its petroleum requirements, these developments quickly translate into higher domestic fuel prices.

Oil prices rose on Tuesday as traders worried about global supplies after US President Donald Trump told ‌the United Nations General Assembly in a speech that a peace deal with Iran could come after the US midterm elections, which are not until early November.

The Brent crude futures November ​contract was down 40 cents, or 40%, to $99.94 a barrel at 10:07 am CDT (1507 GMT). The WTI October ⁠contract, which expires on Tuesday, was down 36 cents, or 0.37%, to $95.43 a barrel.

"Saudi Arabia is acting, not waiting," said Phil Flynn, senior analyst at Price Futures Group. "After Houthi hits on the East-West pipeline forced a shutdown of Yanbu loadings, Aramco loaded about 14 million barrels of crude onto seven VLCCs inside the Gulf.

Satellite and tracker data showed ​Saudi oil moving through Hormuz, averaging about 2.9 million barrels a day over the last six days, up from roughly 700,000 barrels ​a day in August".