The federal government on Tuesday slashed petrol and high-speed diesel prices for the second consecutive day, cutting petrol by Rs2.71 and diesel by Re0.03 per litre with effect from Wednesday, October 14.
Under the notification issued by the Petroleum Division on the Oil and Gas Regulatory Authority’s recommendation, petrol will sell at Rs392.66 per litre, down from Rs395.37, while high-speed diesel drops to Rs396.82 from Rs396.85.
The cut follows Monday’s revision, which had lowered petrol by Rs2.93 per litre and nudged diesel upward. The back-to-back adjustments reflect the government’s shift to a daily price review mechanism.
Petroleum Minister Ali Pervaiz Malik announced on July 17 that fuel prices would be fixed daily based on a seven-day average of international market prices, in line with international practice. Before that, rates were revised weekly since March and fortnightly earlier.
The change was introduced amid volatility in global oil markets caused by renewed hostilities in the Middle East, which began on February 28 when the United States and Israel attacked Iran, leading Tehran to shut the Strait of Hormuz. OGRA has also started publishing daily petroleum prices on its website to improve transparency and pass changes in international prices to consumers more quickly.
Petrol is mainly used in private transport, rickshaws and two-wheelers, so its price movements hit middle and lower-middle class commuters the hardest. The government continues to levy Rs114 per litre in taxes and duties on petrol and Rs100 per litre on diesel.
For context, petrol prices peaked at Rs458.41 on April 3 after climbing from Rs266 in the first week of March, while diesel peaked at Rs520.35 the same day, up from Rs281 after the February 28 conflict began.
Separately, Prime Minister Shehbaz Sharif announced a relief scheme on September 13 offering a Rs100 per litre petrol discount to motorcycle and rickshaw owners on up to 20 litres a month, and to owners of vehicles up to 800cc on up to 30 litres a month.
