Federal govt cuts petrol price by Rs5.16, diesel by Rs7.69 per litre

ISLAMABAD: Federal government on Monday reduced petrol prices by Rs5.16 per litre and high-speed diesel prices by Rs7.69, with the new rates taking effect October 20. Under the latest revision, petrol will cost Rs381.14 per litre, down from Rs386.30, while high-speed diesel will be priced at Rs389.27, compared with Rs396.96 previously. According to a notification issued by the Petroleum Division, the revised prices follow changes in the international oil market. The Oil and Gas Regulatory Authority has begun publishing daily petroleum prices on its website under a new pricing mechanism aimed at improving transparency and allowing fluctuations in global oil prices to be reflected more quickly in domestic rates. Petroleum Minister Ali Pervaiz Malik said the daily prices are based on a seven-day average of international market rates, in line with international practices. Under the new framework, Ogra will determine daily ex-depot prices for petrol and high-speed diesel using average international prices recorded over the previous seven days. The regulator can announce the prices without prior approval from the prime minister or federal government. Prices notified on Fridays will remain unchanged over the weekend, while any change in the petroleum levy will require approval from the Finance Division. The levy cannot exceed the limit approved by the federal cabinet. The framework also provides for daily pricing of kerosene oil and light diesel oil. The latest reduction will apply from October 20, according to the Petroleum Division notification.