The federal government on Thursday decreased the price of petrol and high-speed diesel (HSD) by 84 paisas and Rs2.63 per litre, respectively, for September 25.

According to a notification issued by the Petroleum Division, the price of petrol was fixed at Rs389.28 per litre, while HSD would cost Rs412.12 per litre for Friday.

The latest revision comes a day after the government decreased the price of petrol and HSD by Rs1.93 and Rs4.21 per litre, respectively, for September 24.

Read: Govt cuts petrol price by Rs1.93, HSD by Rs4.21 for Sep 24

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.

Earlier this month, 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 prices rose about ​2% on Thursday after a Houthi missile attack on Saudi Arabia revived supply disruption fears, but pared earlier gains on reports ‌the US and Iran discussed reopening the Strait of Hormuz.

Brent futures rose $2.04, or 2.0%, to $105.12 a barrel at 12:29 pm EDT (1629 GMT), while US West Texas Intermediate crude rose $1.99, or 2.2%, to $94.15.

US and Iranian negotiators in New York are exploring a phased path out of war that would involve Tehran ​reopening the Strait of Hormuz and Washington lifting its economic blockade of Iran, sources close to the talks said.

The ⁠strait has become the central bargaining chip in efforts to end the nearly seven-month US-Iran conflict, with Iran seeking relief from the US blockade that ​is choking its economy and Washington seeking free passage for ships on the global oil supply route now blocked by Tehran.