The government has cut the price of petrol by Rs8 a litre to Rs338 and high-speed diesel by Rs7 to Rs371, with the new rates in force from Wednesday, 11 November. The revision was notified by the Petroleum Division and the Oil and Gas Regulatory Authority (Ogra) on Tuesday evening. Under the daily pricing system the rates apply for today and can change again tomorrow.
It is the second cut in four days. On 7 November the government reduced petrol by Rs6.59 a litre and diesel by Rs4.25, with those rates running until 10 November. Since 17 July, fuel prices have been reviewed almost daily rather than weekly, after renewed fighting between the United States and Iran pushed up global oil prices, and the latest cut follows easing international prices.
Consumers still pay heavy taxes at the pump — Rs114 a litre on petrol and Rs100 a litre on diesel. Diesel has now fallen well below its record high of Rs520.35 a litre, recorded on 3 April. Part of the relief comes from an arrangement announced on 2 November under which oil refineries will absorb an estimated Rs15 billion over 30 days towards the petroleum levy, worth Rs14.71 a litre on petrol at the retail level. The Prime Minister’s Fuel Relief Scheme, launched on 17 September, also gives a Rs100-a-litre subsidy to owners of motorcycles, rickshaws and vehicles of up to 800cc.
Talks on longer-term relief continued on Tuesday, with the government and Jamaat-i-Islami holding another round of negotiations on the petroleum levy. No final figure has been announced.
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