By Ali Imran
The federal government has cut the price of petrol by Rs3.40 per litre and high-speed diesel (HSD) by Rs7.76 per litre for the next three days.
Following the reduction, petrol will be sold at Rs374.51 per litre, while the price of high-speed diesel has been lowered to Rs395.20 per litre.
According to a notification issued by the Oil and Gas Regulatory Authority (OGRA), the revised rates will remain effective until November 3.
Ogra has also begun publishing daily petroleum prices on its website to improve transparency and allow changes in international oil prices to be passed on to consumers more quickly.
Petroleum Minister Ali Pervaiz Malik said the daily prices are based on a seven-day average of international market prices, in line with international practice.
Revised fuel rates
| Effective date | Products | Old rates | New rates | Changes in prices Rs/litre |
| Nov 3 | Petrol | 377.91 | 374.51 | -3.40 |
| Nov 3 | High-speed diesel | 402.96 | 395.20 | -7.76 |
Amid volatility in global oil rates on the back of renewed hostilities in the Middle East, the government decided to switch to a daily fuel price review mechanism.
The government had introduced a weekly fuel price review system after the conflict in the Middle East began on February 28, when Israel and the United States attacked Iran, leading Tehran to shut the Strait of Hormuz — the main route before the war for around a fifth of global energy supplies.
Tensions have mounted since a fragile June truce between Tehran and Washington collapsed, reviving fears of full-scale war and disrupting energy flows through the Strait.
Previously, the petroleum rates were revised fortnightly.
How revised petrol pricing works
The federal cabinet approved changes to the petrol pricing mechanism on October 30 amid volatility caused by the US-Iran war.
Under the revised formula, the import price of petrol is determined on the basis of the actual import cost of the relevant PSO cargo. If that cost is unavailable for daily pricing, the premium, incidentals and customs duty of the last available cargo are used instead.
For local refineries, the government has temporarily fixed the premium, incidentals and customs duty used in calculating the ex-refinery petrol price at their March 7, 2026 — pre-war — levels for 30 days.
The difference between the import price and the resulting ex-refinery price is to be surrendered by refineries under the petroleum levy account, with the resulting benefit passed on through a corresponding reduction in the petrol price.
The government has also introduced a short-term adjustment to smooth petrol price movements, incorporating the benefit arising from a premium differential into petrol prices at a rate of $2.950 per barrel per day.
