The government has announced another petrol price cut, reducing petrol by Rs9.41 per litre to Rs352.59 from Friday, November 6. High-speed diesel has been cut by Rs5.56 per litre to Rs382.25, according to the notification of the Oil and Gas Regulatory Authority (OGRA). It is the fourth reduction in a row.
Petrol was being sold at Rs362 per litre on Thursday, while diesel cost Rs387.81. Under the daily pricing system adopted because of the Middle East conflict, prices are reviewed every working day and stay unchanged on Saturdays and Sundays.
Petrol Price Cut: New Rates From November 6
| Product | 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 |
Three Days of Cuts at a Glance
| Effective date | Petrol (Rs/litre) | Cut | Diesel (Rs/litre) | Cut |
|---|---|---|---|---|
| November 4 | 369.06 | -5.45 | 391.52 | -3.68 |
| November 5 | 362.00 | -7.06 | 387.81 | -3.71 |
| November 6 | 352.59 | -9.41 | 382.25 | -5.56 |
In three days petrol has become Rs21.92 per litre cheaper and diesel Rs12.95 cheaper. These cuts come on top of the Rs14.71 per litre relief announced earlier this week under a 30-day arrangement in which oil refineries absorb about Rs15 billion of the petroleum levy. The government still collects taxes and duties of about Rs114 per litre on petrol and Rs100 per litre on diesel.
Why Oil Prices Are Falling
The latest petrol price cut follows a sharp fall in global crude. Brent crude dropped 8.7 percent to $94.62 a barrel on Wednesday, its lowest level in about two months, while US crude fell 8.3 percent to $88.12. Prices fell after Democrats won control of both houses of the US Congress in the November 3 midterm elections, which raised market hopes of a negotiated end to the US-Iran war that has pushed up energy costs since February. Brent had touched about $118 a barrel only a week earlier.
The fall is based on expectations, not on a peace deal. A senior Iranian official has said Washington and Tehran are still far from an agreement, and analysts warn that any new escalation could push Brent back above $110.
How the Petrol Price Cut Affects You
- Motorcyclists: filling a 10-litre tank now costs about Rs94 less than on Thursday and about Rs219 less than on Tuesday.
- Car owners: a 40-litre fill-up is about Rs376 cheaper than a day earlier.
- Transport and farmers: lower diesel reduces the cost of goods transport, buses, tractors and tube wells, which can ease food and freight prices if the cut is passed on.
- Inflation: fuel has a large weight in Pakistan’s inflation basket, so a steady fall can cool prices in the coming weeks.
Public transporters and goods carriers have often been slow to lower fares after fuel cuts. Commuters can ask local transport authorities to revise fares, as provincial governments usually issue new fare notifications after a major petrol price cut. Traders who use diesel generators during load-shedding will also see lower running costs.
How the Daily Pricing Formula Works
Under the revised formula, the import price of petrol is worked out from the actual cost of the relevant Pakistan State Oil cargo. When that figure is not available for a given day, the premium, incidental charges and customs duty of the last cargo are used. Changes in the exchange rate, international Platts prices and the petroleum levy then decide the final price notified each working day.
Petrol and diesel are still well above the levels seen before the conflict began in February, when the war disrupted shipping through the Strait of Hormuz, LNG supplies from Qatar and fuel trade with Iran. Pakistan imports most of its crude oil and fuel, so global prices feed directly into local rates.
Will the Petrol Price Cut Continue?
Under the daily formula, the next change can come on Monday, November 9, as prices stay the same over the weekend. If Brent stays near $95 and the rupee holds steady, more relief is possible. The government has also said it is working on a similar mechanism to cut LPG prices. Any new tension in the Gulf, however, could reverse the trend quickly.
For official updates, visit the Oil and Gas Regulatory Authority (OGRA) website.
Read More: Petrol Cut by Rs7.06 to Rs362, Diesel Down Rs3.71
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