Government cuts petrol and diesel prices for fifth consecutive day
The federal government has reduced petrol and diesel prices for the fifth day in a row, lowering petrol by Rs6.59 and diesel by Rs4.25 per litre.
Petrol and diesel prices have decreased for the fifth day in a row, with petrol falling to Rs346 per litre and diesel to Rs378 per litre. The federal government reduced petrol prices by Rs6.59 per litre and high-speed diesel by Rs4.25 per litre on November 7, 2026. This marks the fifth consecutive daily reduction following announcements since November 2.
The price reductions took effect at midnight and remain in force until November 10. The Petroleum Division issued a notification stating that the Oil and Gas Regulatory Authority revised prices under a federal government-approved mechanism. Petrol prices decreased from Rs352.59 to Rs346 per litre, and high-speed diesel from Rs382.25 to Rs378 per litre.
Price decline drivers
Global crude price declines and a Rs15 billion monthly burden on refineries enable the price reductions. Global Brent crude futures were projected to decline 16% weekly, marking their steepest fall since the start of the Covid-19 pandemic. WTI crude futures were set for a 13% weekly decline. On Friday, Brent crude futures rose 31 cents to $98.60 per barrel, while WTI rose 48 cents to $91 per barrel. Oil refineries will bear a Rs15 billion monthly burden to allow petrol to be sold Rs15 cheaper than the global market.
Targeted relief measures
A special relief scheme announced on September 13 provides subsidised fuel for motorcycles, three-wheelers and small cars. On that date, Prime Minister Shehbaz announced a relief scheme for users of motorcycles, autos, and vehicles up to 800cc to alleviate rising oil prices. The scheme offers Rs100 per litre off petrol for eligible vehicles.
Approximately 11.8 million beneficiaries are covered. The breakdown of entitlements is as follows:
| Vehicle Type | Number of Users | Monthly Relief (Litres) | Maximum Monthly Relief (Rs) |
|---|---|---|---|
| Two-wheelers | 10 million | 20 | 2,000 |
| Three-wheelers | 800,000 | 20 | 2,000 |
| Cars (up to 800cc) | 1 million | 30 | 3,000 |
Policy framework
The government has shifted to a daily pricing mechanism and assigned Ogra responsibility for price revisions. On July 17, the petroleum minister announced that fuel prices would now be fixed on a daily basis due to international market fluctuations. The cabinet and prime minister decided to give Ogra responsibility for daily fuel pricing based on international market trends, replacing the previous weekly system.
Petroleum Minister Ali Pervaiz Malik said: "Efforts were being made to introduce a similar system for liquefied petroleum gas (LPG)." The price reductions remain in force until November 10, 2026, with potential for further adjustments based on global market trends.
