The government has announced a petrol price cut of Rs5.16 per litre, bringing the new price to Rs381.14, while high-speed diesel has been reduced by Rs7.69 to Rs389.27 per litre from October 20.
The Petroleum Division said the Oil and Gas Regulatory Authority (OGRA) revised ex-depot prices under the federal government’s pricing mechanism, citing global market movements, including changes in Platts rates, premiums and incidentals.
Biggest petrol price cut since August
This is the largest single reduction since late August. In the previous revision on Friday, October 16, petrol was cut by Rs3.93 to Rs386.30 while diesel stayed unchanged at Rs396.96.
Even after the latest relief, fuel remains more expensive than at the end of August, when petrol was Rs342.79 and diesel Rs370.41 per litre. Petrol is still about Rs38 higher and diesel nearly Rs19 higher than those levels.
Under the daily pricing system now in place, prices are revised more frequently in line with international markets.
Why prices came down
Global crude prices eased on Monday as traders took profits. Brent fell $1.72 to $108.14 a barrel after touching its highest level since May the previous Friday, while US crude was around $100.54.
What it means for consumers
The cut in diesel, which is widely used by goods transport, public transport and agriculture, could ease freight costs, while motorcyclists and car owners will get some relief at the pump. Further changes will depend on how oil markets move amid tensions in the Gulf.
