The federal government has cut the price of petrol by Rs8 a litre and high-speed diesel by Rs7 a litre, bringing fresh relief to motorists and transporters across Pakistan. The revised prices took effect on Wednesday, 11 November, under the daily fuel price review mechanism.

According to a notification issued by the Oil and Gas Regulatory Authority (OGRA), petrol has fallen from Rs346 to Rs338 a litre, while high-speed diesel has dropped from Rs378 to Rs371 a litre. The regulator said the revised ex-depot prices were determined under the petroleum products pricing mechanism approved by the federal government.

Daily pricing continues

OGRA has begun publishing daily petroleum prices on its website to improve transparency and pass changes in international oil prices on to consumers more quickly. Under the system introduced in July, prices can be revised every 24 hours instead of through the traditional fortnightly review, although daily adjustments remain suspended on Saturdays, Sundays and public holidays.

The latest cut continues a run of reductions since late October. Petrol is now almost Rs40 a litre cheaper than its level of Rs377.91 on 31 October, while diesel has fallen by nearly Rs32 a litre over the same period, helped by a sharp correction in international crude prices and changes to the domestic pricing mechanism.

How the new formula works

The federal cabinet approved changes to the petrol pricing mechanism on 30 October amid volatility in global oil markets. Under the revised formula, the import price of petrol is determined on the basis of the actual import cost of the relevant Pakistan State Oil cargo. For local refineries, the government has temporarily fixed the premium, incidentals and customs duty used in calculating the ex-refinery price at their 7 March 2026 levels for 30 days.

The difference between the import price and the resulting ex-refinery price is to be surrendered by refineries under the petroleum levy account, with the resulting benefit passed on through a corresponding reduction in the petrol price.

Sources: Islamabad Post and The News Lark.