The government announced on Tuesday that the petrol price would remain unchanged for the next two weeks while it increased the high-speed diesel (HSD) rate by Rs5 per litre.

For the upcoming 15 days, petrol would continue to be priced at Rs247.03 per litre, while the HSD would be available at Rs251.29 per litre. These new prices will take effect from October 16, 2024.

Previously, reports said that the government might increase diesel prices by as much as Rs13 and petrol prices by Rs5.5 per litre.

In the last review, the government had lowered the petrol price by Rs2.07, bringing it down to Rs247.03 per litre, while HSD was reduced by Rs3.40 to Rs246.29 per litre, as stated in a notification from the Finance Division.

Meanwhile, international oil prices tumbled more than 4% to a near two-week low on Tuesday due to a weaker demand outlook and after a media report said Israel would not strike Iranian nuclear and oil sites, easing fears of a supply disruption.

Brent crude futures settled down $3.21, or 4.14%, at $74.25 a barrel, according to Reuters. West Texas Intermediate futures finished down $3.25, or 4.4%, at $70.58 a barrel.

Both benchmarks had earlier fallen by $4, reaching their lowest since the beginning of October, after settling about 2% lower on Monday.

Pakistan’s fuel rates are determined by a pricing formula approved by the government.

In the fiscal year budget, the government increased the maximum petroleum levy from Rs60 to Rs70 per litre to collect Rs1.28 trillion. The target is nearly Rs150 billion higher than the previous year’s collection of Rs1.019 trillion and exceeds the budget target of Rs869 billion.

The government has imposed about Rs78 per litre tax on petrol and HSD.