The federal government has cut the price of petrol by Rs8 a litre and high-speed diesel by Rs7 a litre, with the new rates taking effect from 11 November. Petrol will now cost Rs338 a litre, down from Rs346, while diesel falls to Rs371 a litre.

The Oil and Gas Regulatory Authority (OGRA) announced the revised prices on Tuesday, 10 November, and said they would remain in effect from 11 November. The cut follows a fall in international crude oil prices, which has allowed the government to pass on lower costs to motorists.

How much fuel prices have fallen

The latest cut continues a sharp fall in fuel prices over the past two weeks. Petrol has fallen from Rs377.91 a litre on 31 October to Rs338 a litre, a cumulative reduction of almost Rs40 a litre in less than a fortnight, as global oil prices declined and the government moved to a daily pricing system.

OGRA has begun publishing daily petroleum prices on its website to improve transparency and allow changes in international oil prices to be passed on to consumers more quickly. Under the new system, prices are reviewed every day rather than once a fortnight, as they were before.

The weekly review system had been introduced after the outbreak of the Israel-Iran conflict in February, which was further intensified by US involvement and disruptions to energy shipments through the Strait of Hormuz, a key route for global oil supplies. Prior to the weekly mechanism, petroleum prices were revised on a fortnightly basis.

How the new pricing formula works

The federal cabinet approved changes to the petrol pricing mechanism on 30 October amid volatility caused by the US-Iran war. 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. If that cost is unavailable for daily pricing, the premium, incidentals and customs duty of the last available cargo are used instead.

For local refineries, the government has temporarily fixed the premium, incidentals and customs duty used in calculating the ex-refinery petrol price at their 7 March 2026, pre-war, 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.

The government has also introduced a short-term adjustment to smooth petrol price movements, incorporating the benefit arising from a premium differential into petrol prices at a rate of $2.950 per barrel per day.

What the cut means for motorists

For a motorist buying 30 litres of petrol, the Rs8 cut saves Rs240 on a full fill compared with the previous price. Transporters and businesses that run on diesel should also see lower running costs, although the benefit depends on how far the lower pump prices feed through into fares and freight charges.

Fuel prices remain a sensitive issue in Pakistan, where transport costs feed directly into the prices of food and other goods. The government will review prices again under the daily mechanism, so further changes are possible if international oil prices move in either direction.

Motorists should note that the new prices apply from 11 November. Prices at individual filling stations should reflect the OGRA notification, and the regulator's daily published rates are the reference point for the price at the pump.

Frequently asked questions

What are the new petrol and diesel prices? Petrol costs Rs338 a litre from 11 November, down Rs8 from Rs346. High-speed diesel falls Rs7 a litre to Rs371.

When do the new prices take effect? From 11 November, according to OGRA. The revised prices were announced on Tuesday, 10 November.

Why have prices fallen? International crude oil prices have fallen, and the government has moved to a daily pricing system under a revised formula approved by the federal cabinet on 30 October, so lower global prices reach consumers more quickly.

Sources: The News and Pakistan Point.