The federal government has reduced the price of petrol by Rs3.93 per litre while leaving the rate for high-speed diesel at Rs396.96, under the latest fuel price notification.
Petrol will now sell at Rs386.30 per litre. The revised rates apply from October 17 to 19, according to the Petroleum Division.
The adjustment is the latest in a run of near-daily changes. The government has moved away from the old fortnightly review cycle, first to a weekly system and now to daily pricing, as volatility in world oil markets continues.
Under the new framework, the Oil and Gas Regulatory Authority will publish ex-depot prices for petrol and diesel every day. Prices will be worked out from the average of international market rates over the previous seven days.
Petroleum Minister Ali Pervaiz Malik said the daily prices follow the seven-day average, in line with practice in international markets. The regulator will be able to announce daily prices without first seeking approval from the prime minister or the federal government.
Prices notified on Fridays will remain in force over the weekend, so the rates announced on Friday will hold on Saturday and Sunday.
The shift to daily pricing follows renewed hostilities in the Middle East, which have unsettled global oil markets. The government had introduced weekly reviews after the conflict involving Iran, the United States and Israel began in late February, when Tehran shut the Strait of Hormuz, a route that previously carried around a fifth of global energy supplies.
The new framework also changes fuel import arrangements for the current fiscal year. Imports of high-speed diesel will be routed exclusively through Pakistan State Oil, while oil marketing companies will be allowed to import petrol in line with their market shares.
The document behind the new system also states that the prices of kerosene oil and light diesel oil will be fixed on a daily basis, and that the petroleum levy cannot exceed the limit approved by the federal cabinet. Any change in the levy rate will require approval from the Finance Division.
