Government cuts petrol and diesel prices effective November 3
The federal government reduced petrol by Rs3.40 and high-speed diesel by Rs7.76 per litre, with new prices taking effect on November 3. The cuts are enabled by a Rs15 billion monthly burden on oil refineries and come alongside existing relief schemes and austerity measures.
The government slashed petrol by Rs3.40 per litre and high-speed diesel by Rs7.76 per litre, effective November 3. The Oil and Gas Regulatory Authority confirmed the new petrol price as Rs374.51 and high-speed diesel as Rs395.20 per litre.
This price revision is part of a new pricing arrangement. It follows a period of significant volatility, where petrol prices had peaked at Rs458.41 per litre on April 3. High-speed diesel had reached Rs520.35 per litre on the same date after rising from Rs281 per litre earlier in the year.
Refineries bear Rs15 billion monthly cost
Oil refineries will absorb approximately Rs15 billion each month to enable the price reductions. This burden allows petrol to be sold significantly cheaper than global market prices. The government confirmed this arrangement.
Petroleum Minister Ali Pervaiz Malik acknowledged the refineries' role. "I am grateful to all the refineries that saw the public is in difficulty and with the government’s help … increased their throughput," he said.
Daily pricing mechanism in place
The government is operating under a new pricing system announced on July 17. This mechanism allows for daily reviews and notifications of petroleum product prices based on international market fluctuations. It replaced a previous weekly adjustment system. The cabinet and prime minister delegated the responsibility for these daily decisions to the Oil and Gas Regulatory Authority.
Another price determination is due on November 4.
Relief scheme covers millions
A separate, targeted relief scheme announced on September 13 remains in effect. Prime Minister Shehbaz Sharif announced this special relief, which offers Rs100 per litre off petrol for specific vehicles. The scheme benefits an estimated 11.8 million users.
The relief structure is as follows:
| Vehicle Type | Number of Beneficiaries | Monthly Relief Limit | Maximum Monthly Relief |
|---|---|---|---|
| Motorcycles | 10 million | 20 litres | Rs 2,000 |
| Auto-rickshaws | 800,000 | 20 litres | Rs 2,000 |
| Cars up to 800cc | 1 million | 30 litres | Rs 3,000 |
Discussions about expanding this scheme are ongoing. Jamaat-i-Islami chief Hafiz Naeemur Rehman met with the prime minister on October 27 to discuss public relief demands. The two sides agreed to form a joint committee to consider expansion.
Austerity measures continue
Stringent austerity and fuel conservation measures, reintroduced on September 17, remain enforced. These measures mandate strict business operating hours across the country.
Shops, markets, malls, bazaars, and grocery stores must close by 9pm throughout the week. Marriage halls and similar commercial venues for festive events must close by 10pm. Restaurants, cafes, and food outlets may operate until 11pm, with takeaway and home delivery services exempt from the timing restrictions.
The government also implemented a 50% cut in fuel allocations for official vehicles for three months. The temporary nature of the current price relief creates uncertainty for consumers. Frequent price fluctuations complicate financial planning for transporters, farmers, small businesses, and motorists.
