The caretaker government on Saturday announced a reduction of Rs8 per litre in the price of petrol and Rs11 per litre in that of high-speed diesel (HSD).

The new price for petrol and diesel will be 323.38 and 318.18 per litre, respectively. The new prices go into effect on October 1, 2023.

In a statement, the Ministry of Finance said the decision to lower petroleum prices was made after the Pakistani rupee gained value and POL rates dropped globally.

“In the wake of variations in international prices of petroleum products and the improvement in the exchange rate, the Government of Pakistan has decided to revise the consumer prices of petroleum products,” the ministry said.

The relief comes at a time when the country’s citizens, reeling under high inflation, are also facing high electricity bills.

In the last review on September 15, the caretaker government announced a second massive hike in petrol and diesel prices, which took their rates to Rs331.38 and Rs329.18 per litre, respectively.

Earlier this week, government officials hinted at reducing the petrol prices as the Pakistani rupee surged against the dollar.

On the back of a crackdown on smuggling and illegal exchanges, the Pakistani rupee emerged as the best-performing currency in the world in September.

The currency appreciated from Rs305.54 against the US dollar on August 31 to Rs287.74 on September 28 against the greenback, an increase of Rs17.8 or 6.2%. The rupee is currently also on a winning run of 17 sessions, in which it has gained nearly 7% after it hit a record low of 307.1 on September 5.

Moreover, during the month, the State Bank of Pakistan (SBP) also announced structural reforms targeting the Exchange Companies (ECs) sector.