The federal government on Tuesday decreased the price of petrol by Rs3.19 per litre while increasing the price of high-speed diesel (HSD) by Rs2.25 per litre for October 28.

According to a notification issued by the Petroleum Division, the price of petrol was fixed at Rs376.06 per litre, while HSD would cost Rs398.07 per litre for Wednesday.

The latest revision comes a day after the government increased the price of petrol and high-speed diesel (HSD) by Rs1.54 and Rs2.16 per litre, respectively, for October 27. 

Read: Govt hikes petrol by Rs1.54, diesel by Rs2.16 for Oct 27

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.

Oil futures fell by more than $2 a barrel on Tuesday ​as traders focused on Middle East peace talks, though prices remained near the highest in six months as the ‌Houthi-Saudi Arabia conflict raged on and investors worried about the potential for more fighting in the US-Israeli war with Iran.

Brent crude futures were down $2.09, or 1.8%, at $113.72 a barrel by 1:44 pm EDT (1744 GMT). US West Texas Intermediate crude was down $1.93, or 1.9%, at $99.83.

Iranian Security Council chief Mohsen Rezaei met Supreme Leader Ayatollah Mojtaba Khamenei on ​Tuesday, a day after holding talks with representatives of Saudi Arabia, Turkiye and Pakistan.

Iran's state media said Khamenei had emphasised the importance of pursuing Iran's interests ​and maintaining its conditions for ending the war.

The four countries agreed to continue talks with a view to ⁠strengthening cooperation in peace and security, Iranian state media said.

"Continued Houthi attacks on Saudi Arabia and the expanding military presence in the Gulf are keeping supply risks in place, even as diplomatic headlines encourage some of the recent premium to unwind," said Gelber & Associates analysts in a note.