Petrol cut by Rs8 to Rs338 a litre, diesel down Rs7 to Rs371

ISLAMABAD: The government has cut the price of petrol by Rs8 a litre and high-speed diesel by Rs7, with the new rates taking effect today, Wednesday, November 11. The Oil and Gas Regulatory Authority (OGRA) issued the notification on Tuesday night. Petrol will now sell at Rs338 a litre, down from Rs346, while diesel falls from Rs378 to Rs371 a litre.

It is the second cut in fuel prices in five days. On November 7, petrol was reduced by Rs6.59 and diesel by Rs4.25 a litre, and those rates applied from November 7 to 10. Taken together, the two rounds of cuts have brought both fuels down noticeably within a week, offering some relief to motorists, motorcyclists and the transport sector, which had been passing higher fuel costs on to passengers and freight.

A new system of daily prices
The latest revision comes under the new daily fuel pricing mechanism, approved by the federal cabinet on October 30. OGRA now publishes petroleum prices every day, so that movements in international crude prices reach consumers more quickly. The recent fall in global crude rates is being cited as the main reason behind this round of relief.

Taxes and the relief effort
The government continues to levy Rs114 a litre in taxes and duties on petrol and Rs100 a litre on diesel, which are built into the pump price. Under an arrangement announced on November 2, oil refineries will bear a cumulative impact of Rs15 billion over 30 days, contributing to the petroleum levy. The Prime Minister’s Fuel Relief Scheme, rolled out on September 17, also remains in force, aimed at easing the burden of fuel prices on households.