The federal government on Thursday decreased the price of petrol by Rs3.63 per litre, while increasing the price of high-speed diesel (HSD) by 31 paisas per litre for October 16.

According to a notification issued by the Petroleum Division, the price of petrol was fixed at Rs390.23 per litre, while HSD would cost Rs396.96 per litre for Friday.

The latest revision comes a day after the government increased the price of petrol by Rs1.2 per litre, while decreasing the price of HSD by 17 paisas per litre for October 15.

Read: Govt hikes petrol by Rs1.2, cuts diesel by 17 paisas for Oct 15

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 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.

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.

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.

Brent crude ​was little changed on Thursday as investors weighed possible US steps to ease restrictions on the ‌world’s “shadow fleet” of tankers, while conflict in the Middle East kept a geopolitical risk premium in the market.

The international benchmark was up 2 cents, or 0.02%, at $106.08 at 12:14 pm EDT (1614GMT).

US West Texas Intermediate crude futures were up $2.96, or 3.11%, to $98.05 a barrel, after a ​large US crude stock draw helped support prices.

“The ongoing conflict between Saudi Arabia and the Houthis ​is keeping a geopolitical premium ​in oil markets, but ⁠energy infrastructure has not been attacked in the last several days,” MUFG analysts said in a note.