The federal government has cut the price of petrol by Rs3.19 a litre and raised the price of high-speed diesel by Rs2.25 a litre in its latest fuel price revision, which takes effect on Wednesday, October 28.
Under the new rates, petrol will sell at Rs376.06 a litre, down from Rs379.25, while high-speed diesel will cost Rs398.07 a litre, up from Rs395.82. The revision was notified by the Petroleum Division and reported by the Oil and Gas Regulatory Authority (OGRA).
The change is the first under a new daily fuel price review system, replacing the fortnightly revisions used previously. Under the framework approved by the federal cabinet, OGRA will set ex-depot prices for petrol and diesel each day, using the average of international market prices over the previous seven days.
Officials say the daily system is meant to pass changes in world oil prices on to consumers more quickly. Petroleum Minister Ali Pervaiz Malik said the daily rates follow a seven-day average of international prices, in line with practice elsewhere. Prices notified on Fridays will stay unchanged over the weekend.
The shift to more frequent reviews follows a move to a weekly system earlier this year, after conflict in the Middle East that began on February 28, when Israel and the United States attacked Iran and Tehran shut the Strait of Hormuz, unsettling oil markets.
Under the new framework, OGRA will not need prior approval from the prime minister or the federal government for each daily announcement. The petroleum levy cannot go beyond the limit set by the cabinet, and any change to the levy itself will still need Finance Division approval.
