Govt increases diesel price by Rs2.29, petrol remains unchanged until Nov 2

Read:Diesel crosses Rs400 mark, petrol remains unchanged for Oct 30On 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 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.

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. 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. Also Read:Oil set for fourth monthly gain as Hormuz tanker attack highlights supply risks.

Oil pricesjumpedby more than 2 per cent on Friday, on pace for a fourth straight monthly gain, as a tanker was struck in the Strait of Hormuz and the US reiterated the possibility of renewing hostilities in Iran. Brent, the benchmark for two-thirds of the world's crude, was up 2.37 per cent at $117.56 a barrel at 7.32pm UAE time.

West Texas Intermediate, the gauge that tracks US crude, added 2.13 per cent to $104.17 a barrel. The Yemeni army targeted Saudi Aramco in a massive wave of missile ​attacks,. Those reports of a new spate of attacks helped oil recoup some losses later in the session, said ​John Kilduff, partner at Again Capital.

Earlier, US Vice President JD Vance sought to revive peace negotiations by sending a ⁠letter to Mohsen Rezaei, the head of Iran's Supreme National Security Council, the. Wall Street Journalsaid on Wednesday, citing US officials and people familiar with ​the matter.

"Oil prices are under pressure today amid renewed diplomatic efforts to de-escalate the conflict in the Middle East," UBS analyst Giovanni Staunovo said.