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The new prices
Pakistan has reduced the prices of petrol and diesel from November 4, giving some relief to motorists, transporters and businesses. According to a notification issued by the Oil and Gas Regulatory Authority (OGRA), the price of petrol has been cut by Rs5.45 per litre to Rs369.06, while high-speed diesel has been reduced by Rs3.68 per litre to Rs391.52.
The revised prices took effect on November 4 under the federal government’s petroleum pricing mechanism, which sets ex-depot prices for petroleum products.
A second cut in one week
This is the second reduction in a week. In an earlier adjustment announced on Monday, the government cut the price of high-speed diesel by Rs7.76 to Rs395.20 per litre and reduced petrol by Rs3.40 to Rs374.51 per litre.
Taken together, the two rounds of cuts have lowered the petrol price by Rs8.85 per litre and the diesel price by Rs11.44 per litre in the space of a few days.
Why prices are falling
The cuts follow a fall in international oil prices. Reports say global crude prices dropped about 2 percent to a three-week low as markets weighed talks aimed at ending conflicts in Ukraine and Iran against concerns about possible supply disruptions.
Pakistan imports most of its fuel, so changes in international prices feed directly into domestic rates through the pricing mechanism.
A new pricing formula
The price cut also comes after Pakistan introduced a revised petroleum pricing formula, effective from November 2. Under the new mechanism, the price of imported petrol is calculated using the actual import cost of the relevant Pakistan State Oil (PSO) cargo, rather than an average benchmark.
The federal cabinet approved the change on October 30, according to Petroleum Division documents cited in news reports. The changes apply specifically to motor spirit, commonly known as petrol, while other pricing parameters remain unchanged.
The government has also introduced a temporary 30-day arrangement for local refineries. During this period, the premium, incidental charges and customs duty used to calculate petrol’s ex-refinery price will remain fixed at their levels of March 7, 2026. A premium differential benefit of $2.95 per barrel per day has also been built into petrol pricing to help smooth price movements.
Officials have said the benefit of these changes will be passed on to consumers through lower prices at the pump.
What stays the same
One part of the price has not changed. The existing petroleum levy of Rs80 per litre remains in place and is separate from the new pricing adjustment.
What it means for consumers
For motorists, the immediate effect is lower fuel bills. For transporters and businesses, cheaper diesel can reduce the cost of moving goods, although analysts note that the effect on overall prices depends on how long international oil prices stay low.
Pakistan has also moved to a daily fuel pricing framework, under which OGRA calculates and publishes ex-depot petroleum prices. That means prices can now be adjusted more frequently than in the past, and the next review will depend on movements in international markets and the exchange rate.
How the new rates compare
For comparison, petrol was selling at Rs374.51 per litre before this latest cut, and diesel at Rs395.20. A motorist buying 30 litres of petrol will now pay about Rs163 less than at the start of the week, while a truck or bus filling 100 litres of diesel will save more than Rs1,100 on the same comparison.
Whether those savings reach passengers and consumers is another question. Transport associations have in the past been slow to reduce fares after fuel cuts, and the government has said it will monitor fares. For households, the more direct benefit is the lower cost of personal transport and of goods that travel by road.
What to watch
The next things to watch are the direction of global crude prices, the next scheduled price review, and whether the relief at the pump is sustained. For now, officials say the revised mechanism is designed to pass changes in international prices to consumers more directly than before.