Petrol Price Cut by Rs9.41 to Rs352.59 a Litre
The government has cut petrol by Rs9.41 a litre and high-speed diesel by Rs5.56, in the fourth consecutive reduction in fuel prices. Petrol will now sell at Rs352.59 a litre, while diesel will cost Rs382.25, under new rates that take effect on Friday, November 6.
The Oil and Gas Regulatory Authority (Ogra) announced the revised ex-depot prices in a notification on Thursday, Dawn reported. The regulator has also started publishing daily petroleum prices on its website, so changes in world oil prices reach consumers more quickly.
| Fuel | Old price (Rs/litre) | New price (Rs/litre) | Change |
|---|---|---|---|
| Petrol | 362.00 | 352.59 | -9.41 |
| High-speed diesel | 387.81 | 382.25 | -5.56 |
Petrol price cut: what changes from November 6
The latest cut follows a reduction of Rs7.06 in petrol and Rs3.71 in diesel only a day earlier, which had set the rates at Rs362.00 and Rs387.81. Prices are now being fixed daily, after the government gave Ogra the task of setting them each day on the basis of world market trends.
Taxes still make up a large part of what motorists pay. The government continues to levy Rs114 a litre in taxes and duties on petrol and Rs100 a litre on diesel.
Part of the relief comes from a deal with oil refineries. Under an arrangement announced on Monday for 30 days, refineries will contribute to the petroleum levy by bearing a cumulative impact of Rs15 billion. The government says this allows a reduction of Rs14.71 in the petrol price at the consumer end.
Petroleum Minister Ali Pervaiz Malik told a press conference on Tuesday that work was under way to bring a similar system for liquefied petroleum gas (LPG). The Jamaat-i-Islami and the government are also due to hold another round of talks on Thursday on possible relief in petroleum prices, after recent discussions between the two sides.
Fourth cut in a row after months of high prices
The run of cuts stands in sharp contrast to the spring, when fuel prices climbed to record levels. Petrol had peaked at Rs458.41 a litre on April 3, after rising from Rs266 in the first week of March. Diesel had reached a peak of Rs520.35 on the same day, after climbing from Rs281 a litre when the US-Iran war broke out on February 28.
Prices had been revised weekly since early March, alongside measures to save fuel amid fears of supply disruption in the Middle East. The government has also reintroduced a set of austerity steps in response to high fuel prices. Markets must close by 9pm, and fuel allocations for official vehicles have been cut by half for three months.
What the cut means for households
Petrol is used mainly in private transport, small vehicles, rickshaws and two-wheelers, so a lower price directly eases the cost of daily travel for middle and lower-middle class families. Diesel powers heavy transport, power plants and large generators, so its price feeds into the cost of goods and electricity. Petrol and diesel are the two biggest revenue earners among fuels, with monthly sales of about 700,000 to 800,000 tonnes.
The relief also helps the wider economy. The rupee gained against the dollar this week, closing at Rs276.67, and the stock market extended its rally as the KSE-100 gained 3,450 points. Cheaper fuel should help keep transport costs down if the trend holds.
Prices down sharply from October
The scale of the fall becomes clear when set against recent prices. When FP last reported a price revision on October 1, petrol stood at Rs387.40 a litre and diesel at Rs400.35. Petrol has since fallen by Rs34.81 a litre and diesel by Rs18.10, in five weeks.
World oil prices have helped. Crude has fallen for a fourth straight day as the risk of war with Iran eases, and the daily pricing system now passes those changes to Pakistani consumers within a day. Whether the relief lasts will depend on world markets and on the levy arrangement with refineries, which runs for 30 days.
When do the new fuel prices apply?
The revised prices of Rs352.59 for petrol and Rs382.25 for diesel take effect on Friday, November 6.
How much has petrol fallen in a week?
Petrol has been cut four days in a row. It stood at Rs362.00 before Thursday’s cut, after a Rs7.06 reduction a day earlier.
Why are fuel prices changing every day?
Ogra now fixes prices daily on the basis of world market trends, under a cabinet decision announced in July, and publishes the daily prices on its website.
Will LPG prices also fall?
Petroleum Minister Ali Pervaiz Malik said on Tuesday that efforts were being made to introduce a similar system for LPG. No date has been announced.
