Pakistan cuts petrol by Rs7.06 and diesel by Rs3.71 per litre

The federal government reduced the prices of petrol and high-speed diesel on Wednesday, with the revised rates taking effect across Pakistan on November 5. Petrol was cut by Rs7.06 per litre, while high-speed diesel became Rs3.71 per litre cheaper, according to the latest fuel-price notification.

Following the revision, petrol will be sold at Rs362 per litre, down from Rs369.06. The price of high-speed diesel has been lowered from Rs391.52 to Rs387.81 per litre. The Oil and Gas Regulatory Authority published the revised rates as part of the country’s current fuel-pricing mechanism.

The reduction came as international crude prices declined during volatile trading. Brent crude was trading near $100.40 a barrel after falling by about $3.20, while US West Texas Intermediate crude dropped by roughly $3.01 to around $93.08. Movements in global oil prices remain a major factor in determining Pakistan’s domestic fuel costs.

Despite the latest decrease, the government continues to collect approximately Rs114 per litre through taxes and duties on petrol and about Rs100 per litre on diesel. The final retail prices therefore reflect not only the cost of imported petroleum products but also levies, duties, exchange-rate movements and other components of the pricing formula.

The government had earlier announced a 30-day arrangement under which domestic oil refineries would absorb a combined Rs15 billion impact through the petroleum levy framework. Officials said the arrangement was designed to provide additional relief to consumers while limiting the financial pressure created by elevated international energy prices.

Petroleum Minister Ali Pervaiz Malik said the authorities were also working on a similar relief mechanism for liquefied petroleum gas. The government and Jamaat-i-Islami have separately continued talks on measures intended to reduce the fuel burden on low-income households, although no additional agreement from those negotiations had been announced with the latest price revision.

Petrol is widely used in motorcycles, rickshaws, cars and other forms of private transport, making price changes particularly important for middle- and lower-income households. High-speed diesel is extensively consumed by freight vehicles, public transport, agricultural machinery, power plants and large generators, so changes in its price can influence transport and production costs throughout the economy.

Pakistan has been revising petroleum prices more frequently because of sharp fluctuations in the international market. Earlier increases had pushed petrol to a peak of Rs458.41 per litre and diesel to Rs520.35 per litre in April, before subsequent reductions. The new rates provide immediate relief to motorists and transport operators, though future revisions will continue to depend on global oil markets and the government’s tax and levy decisions.