Pakistan has cut the price of petrol by Rs3.19 a litre while raising high-speed diesel by Rs2.25, with the revised rates taking effect on Wednesday 28 October under the government's daily petroleum pricing system. Petrol now costs Rs376.06 a litre, down from Rs379.25, while diesel has risen from Rs395.82 to Rs398.07 a litre, according to a notification issued by the Petroleum Division.

Petrol down, diesel up

The split move means diesel now costs Rs22.01 a litre more than petrol, one of the widest gaps between the two fuels this year. Petrol is used mainly by motorcycles, cars and rickshaws, so the cut offers some relief to motorists, while diesel powers much of the country's transport, agricultural machinery and freight, so its rise is likely to add to operating costs for transporters and businesses.

Why prices move every day now

The adjustment follows a cut in petrol customs duty of Rs5.71 a litre, from Rs26.27 to Rs20.56, which helped offset higher import costs, according to the Oil and Gas Regulatory Authority's pricing notification. Under the daily system introduced in July, replacing fortnightly and then weekly reviews, the regulator publishes fresh ex-depot prices each day based on international prices, premiums, exchange rates and taxes, with Friday prices held over the weekend. The latest revision follows Tuesday's increase, when petrol rose Rs1.54 and diesel Rs2.16 a litre.

Sources: Click Pakistan and Hamariweb.