Petrol in Pakistan now costs Rs346 a litre and high-speed diesel Rs378, after the Oil and Gas Regulatory Authority (OGRA) cut prices for the fifth day in a row, bringing a week of steady relief at the pump for motorists and transporters.
OGRA’s notification, issued on Friday, reduced the price of petrol by Rs6.59 a litre, from Rs352.59 to Rs346.00, and high-speed diesel by Rs4.25 a litre, from Rs382.25 to Rs378.00. The new rates took effect on Saturday, 7 November, and will remain in force until Tuesday, 10 November, because Monday, 9 November, is a public holiday.
The latest cut caps a remarkable week for fuel prices. Petrol has fallen by Rs31.91 a litre since 31 October, when it stood at Rs377.91, a drop of about 8.4 per cent. Diesel has come down by Rs24.96 a litre over the same period, from Rs402.96 to Rs378.00. The cuts have arrived almost every day: petrol was reduced by Rs3.40 on 3 November, Rs5.45 on 4 November, Rs7.06 on 5 November and Rs9.41 on 6 November, before Friday’s Rs6.59 cut.
Why prices are falling
The relief is driven by two factors. World crude oil prices have softened, and the federal government has moved to a daily pricing system, with the cabinet and the prime minister entrusting OGRA to set fuel prices each day on the basis of international market conditions, rather than waiting for the old fortnightly cycle.
The current round of relief is also supported by a 30-day arrangement under which oil refineries contribute to the petroleum levy, absorbing a cumulative impact of about Rs15 billion. That deal runs for the rest of the month, which is one reason officials describe the daily cuts as temporary rather than permanent.
It is important to note that the latest cut is not a tax cut. Taxes and duties inside the pump price have not changed. Petrol still carries about Rs114 a litre in taxes, and diesel about Rs100 a litre, according to official pricing data.
What it means for households
For a motorist filling a 40-litre tank, the week’s slide has taken the cost of a full tank of petrol down by nearly Rs1,280 compared with the end of October. Transporters, who run on diesel, have seen a similar saving, and lower diesel prices usually ease pressure on the cost of moving goods, including food, across the country.
The next revision is expected after the 9 November public holiday, when OGRA will publish fresh prices. Whether the run of daily cuts continues will depend on two things: world oil prices and the refinery levy arrangement. For now, motorists have until 10 November to enjoy the lowest petrol price in months.