Petrol price cut by Rs3.40 per litre, diesel by Rs7.76
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- WEB DESK
- November 2, 2026
ISLAMABAD: The federal government on Monday reduced petrol and diesel prices by Rs3.40 and Rs7.76 per litre, respectively, following a recommendation from the Oil and Gas Regulatory Authority (OGRA).
The price of petrol has been reduced to Rs374.51 per litre, while diesel will now cost Rs395.20 per litre.
The revised prices will take effect from midnight and remain in force until the next review.
The government has been adjusting fuel prices in response to volatile international oil markets amid the unresolved US-Iran conflict, which has affected the Middle East and Gulf states.
Earlier today, Information Minister Atta Tarar and Petroleum Minister Malik said at a joint press conference that the government was working to minimise the impact of rising fuel procurement costs while considering international market conditions and Pakistan’s economic constraints.
Tarar said local refineries had agreed to absorb an expected increase of Rs15 per litre in petrol prices, allowing the government to maintain the existing rate.
The arrangement would place an additional financial burden of approximately Rs15 billion per month on local refineries, he added.
Malik said the petrol price approved before October 31 included an import premium of around $20 per barrel. However, subsequent Pakistan State Oil (PSO) tenders showed that petrol import premiums had risen to $25-$30 per barrel or even higher.
He said the government had sought to improve procurement and minimise costs, but the regional situation had made fuel imports more expensive.
Refineries agree to absorb additional costs
The petroleum minister said Prime Minister Shehbaz Sharif had sought the cooperation of local refineries to provide relief to consumers. He cited a similar arrangement under which a crude oil-based pricing formula had been introduced for diesel.
Around 30% of Pakistan’s petrol is produced by local refineries, while the remaining 70% is imported, Malik said.
He said the government had explored ways to intervene in the pricing of locally produced petrol without introducing an impractical system that could discourage imports and lead to fuel shortages.
Following the government’s request, refineries agreed to absorb the expected Rs15 per litre increase to help consumers cope with difficult economic conditions, Malik added.
He thanked the refineries for their cooperation, saying the government had helped ensure crude oil availability, enabling them to increase production and earn higher profits than in previous years.
Malik also recalled their earlier cooperation in providing relief on diesel prices and supplying aviation fuel for Hajj flights at pre-war rates after the conflict began. The refineries had also ensured the supply of JP-8 fuel to the Pakistan Air Force at pre-war prices until June 30, he added.
