The federal government on Monday increased the price of petrol by Rs4.61 per litre while reducing the price of high-speed diesel (HSD) by Rs1.96 per litre for September 22.

According to a notification issued by the Petroleum Division, the price of petrol was fixed at Rs393.75 per litre, while HSD would cost Rs422.08 per litre for Tuesday.

The latest revision comes after the government decreased the price of petrol and HSD by Rs1.65 and 88 paisas per litre, respectively, from Sept 19 to Sept 21.

Read: Govt decreases petrol price by Rs1.65, HSD by 88 paisas till Sept 21

On 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 18, in a bid to provide relief to the public, Prime Minister Shehbaz Sharif directed the immediate inclusion of 20-year-old motorcycles, rickshaws and Qingqi rickshaws in the Prime Minister Fuel Relief Scheme, the Prime Minister’s Office (PMO) said.

The statement further added that all motorcycles, rickshaws and Qingqi rickshaws registered after January 1, 2006, would be eligible for registration in the Prime Minister Fuel Relief Scheme.

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, according to a notification issued by 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.

On September 13, PM Shehbaz announced a 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.

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.

Oil prices eased on Monday to their lowest level in 12 days, ‌as investors hoped for diplomatic progress on the Iran war due to this week’s United Nations meeting and eyed a partial recovery in shipments from Saudi Arabia.

The Brent crude futures November contract fell to its lowest since September 9 at $99.51 a barrel at 1:16 pm ET (1716 ​GMT), down $4.36, or 4.2%.

On Sunday, Iran and the US exchanged new threats, although President Donald Trump said he would be open to meeting Iranian President Masoud Pezeshkian, who was expected to be in New York this week for the United Nations General Assembly.

Investors are pinning their hopes on ​a breakthrough in peace talks this week, said Tamas Varga, analyst at PVM Oil Associates.