Petrol price slashed by Rs9.41 per litre, high-speed diesel by Rs5.56

The Pakistani government has announced a significant reduction in fuel prices, cutting the cost of petrol by Rs9.41 per litre and high-speed diesel (HSD) by Rs5.56 per litre. This marks the fourth consecutive decrease in fuel prices. According to a notification issued by the Oil and Gas Regulatory Authority (Ogra), the new retail prices will be Rs352.59 per litre for petrol and Rs382.25 per litre for HSD, effective from November 6 (Friday).

The government retains taxes and duties of Rs114 per litre for petrol and Rs100 per litre for diesel.

As part of a 30-day arrangement announced on Monday, oil refineries will contribute to the petroleum levy by bearing a combined burden of Rs15 billion, reducing the consumer impact by Rs14.71. Petroleum Minister Ali Pervaiz Malik confirmed ongoing efforts to introduce a similar system for liquefied petroleum gas (LPG). The Jamaat-i-Islami party and the government are preparing to discuss further relief measures in petroleum prices in their upcoming meeting on Thursday.

The HSD price has dropped from its April peak of Rs520.35, which increased from Rs281 per litre after the US-Iran conflict began on February 28. The petrol price spiked to Rs458.41 on April 3 following the war's onset. Meanwhile, the government has reintroduced austerity measures in response to rising fuel costs due to the Middle East situation.

Markets are now required to close by 9 PM, and fuel allocations for official vehicles have been reduced by 50% for three months. On September 13, Prime Minister Shehbaz announced a "relief scheme" for motorcycles, autos, and vehicles up to 800cc to ease the burden of global oil price hikes. The petroleum minister revealed that fuel prices will now be determined daily due to international market price fluctuations, a change from the weekly revisions conducted since early March amid potential oil supply disruptions from the ongoing Middle East conflict. Prior to this, the government had announced targeted relief measures providing subsidised fuel.