The caretaker government on Sunday announced a reduction of Rs40 per litre in the price of petrol and Rs15 per litre in that of high-speed diesel (HSD).

The new price for petrol and diesel will be Rs283.38 and Rs303.18 per litre, respectively, which will go into effect from October 16, 2023.

Business Recorder had reported earlier that the government could slash the ex-depot prices of petroleum products by up to Rs35 per litre.

In the last review on September 30, the caretaker government had announced a reduction of Rs8 and Rs11 in petrol and diesel prices, taking the prices to 323.38 and 318.18 per litre, respectively, in line with rupee’s continues appreciation against the dollar as well as variations in the international prices of petroleum products.

The rupee has cumulatively gained 10.62% since it hit a record low of 307.1 in inter-bank market on Sept 5.

On Friday, the local currency continued its winning run against the US dollar as it gained another 0.35% in the inter-bank market. As per the State Bank of Pakistan, the rupee settled at 277.62 after an increase of Re0.96 in the inter-bank market.

This was the rupee’s 27th consecutive appreciation against the greenback.

However, oil prices leapt nearly 6% on Friday, with Brent posting its highest weekly gain since February, as investors priced in the possibility that the conflict in the Middle East could widen as Israel is reportedly planning to begin ground raids inside the Gaza Strip.