The federal government has cut the price of petrol by Rs3 a litre and high-speed diesel by Rs7 a litre, with the new rates taking effect on Thursday, 12 November, the Oil and Gas Regulatory Authority (OGRA) has announced.
Following the revision, petrol will retail at Rs335 a litre, down from Rs338, while high-speed diesel will cost Rs364 a litre, down from Rs371. The change was announced in a notification issued by the Petroleum Division on Wednesday.
It is the second consecutive day of reductions. On Tuesday, the government cut petrol by Rs8 a litre and diesel by Rs7 a litre, bringing petrol down to Rs338 and diesel to Rs371 before the latest cut took a further Rs3 and Rs7 off those prices.
The government is now revising fuel prices every day under a daily pricing mechanism introduced on 17 July, replacing the previous weekly review system. OGRA has also begun publishing daily petroleum prices on its website so that changes in international oil prices reach consumers more quickly.
According to the regulator, the revised prices were determined under the petroleum pricing mechanism approved by the federal government, taking into account international oil prices, Platts rates, premiums and other associated costs.
The reductions come as the government continues to pass on relief amid changing international oil market conditions. The change was also made in response to volatility in international oil markets and concerns about fuel supplies amid the conflict involving the United States, Israel and Iran.
Despite the cuts, taxes and duties on fuel remain heavy. The government continues to levy Rs114 a litre in taxes and duties on petrol and Rs100 a litre on diesel, according to Dawn.
Under an arrangement announced on 2 November, oil refineries will contribute to the petroleum levy for 30 days, bearing a cumulative impact of Rs15 billion, the government has said.
The daily revision system means prices can now move up as well as down at short notice, depending on international markets. Motorists and transporters will be watching the next daily announcement to see whether the run of cuts continues.
For now, the two successive cuts offer some relief to households and businesses facing high transport costs, with diesel — the fuel that powers most freight and public transport — seeing the larger of the two reductions.
