ISLAMABAD: Pakistan cut petrol prices for a second consecutive day on Friday and lowered diesel rates as global oil prices eased but remained elevated amid Middle East hostilities, while the government expanded a fuel subsidy scheme aimed at cushioning vulnerable consumers from weeks of steep price increases.

The government reduced the ex-depot price of petrol by Rs1.65 to Rs389.14 per liter and high-speed diesel by Rs0.88 to Rs424.04 per liter, according to a Petroleum Division notification. The new prices will remain in effect from Sept. 19 to Sept. 21.

“The change in price is necessitated by global events including changes in Platts rates, premiums, incidentals etc.,” the Petroleum Division said.

The latest revision follows a Rs0.43 reduction in petrol for Sept. 18, when its price fell to Rs390.79 per liter. High-speed diesel, however, rose by Rs3.47 that day to Rs424.92.

The declines offer modest relief after a sustained rise in domestic fuel prices driven by the Middle East situation, which has disrupted energy flows through the Strait of Hormuz and increasingly threatened supplies moving through the Red Sea.

Oil prices fell on Friday, with Brent crude down about 0.9 percent at $103.89 a barrel.

Despite the latest cuts, fuel remains expensive for Pakistani consumers after successive increases in recent weeks, adding to pressure on household budgets and transport costs.

FUEL RELIEF

The government also announced changes on Friday to a recently launched fuel subsidy program for motorcycles, three-wheelers, rickshaws and small cars after reviewing public feedback from its first 48 hours.

Under the revised arrangement, eligible consumers will receive a weekly Rs500 token that can be used to purchase any quantity of fuel, replacing a requirement to buy at least five liters in a single transaction, the government said.

The eligibility age for motorcycles and three-wheelers has also been extended from 15 to 20 years.

There is no change for four-wheel vehicles of up to 800cc, whose eligible owners will continue to receive one 10-liter token every 10 days, or three tokens a month.

Deputy Prime Minister Ishaq Dar, who chaired a meeting of the National Steering Committee on Fuel Subsidy on Friday, also directed the State Bank of Pakistan to provide twice-daily reports on payments to filling stations and ordered alternative arrangements in areas with poor or no Internet connectivity.