The federal government has reduced the prices of petrol and high-speed diesel (HSD), extending a series of fuel price cuts under Pakistan’s daily petroleum pricing mechanism.

According to a notification issued by the Oil and Gas Regulatory Authority (OGRA) after federal government approval, the price of petrol has been reduced by Rs3.39 per litre, bringing the new ex-depot price down to Rs328.56 per litre.

The price of high-speed diesel (HSD) has been cut by Rs4.07 per litre, lowering its new ex-depot price to Rs385.86 per litre.

The revised prices will take effect from midnight and remain in force until August 5 under the government’s daily pricing mechanism.

Consecutive fuel price cuts

The latest reduction follows another cut announced on Monday, when the government lowered petrol prices by Rs4.08 per litre and HSD by Rs2.45 per litre.

Earlier, on August 1, petrol prices were reduced by 12 paise per litre, while HSD became cheaper by 66 paise per litre.

The successive reductions reflect fluctuations in international oil prices under Pakistan’s daily fuel pricing regime.

Global oil prices ease

The latest price revision comes as international oil prices fell to a three-week low after comments by Qatari and US officials raised hopes for a diplomatic resolution to the Iran conflict, potentially improving oil flows through the Strait of Hormuz.

Brent crude futures fell $3.30, or 3.9%, to $80.47 a barrel, while US West Texas Intermediate (WTI) crude dropped $3.67, or 4.6%, to $76.67 a barrel. Both benchmark contracts had earlier fallen by more than 5% to their lowest levels since July 13.

Daily pricing mechanism

Pakistan replaced its weekly petroleum pricing system with a daily mechanism earlier this year.

Under the revised framework, OGRA calculates ex-depot prices using a rolling seven-day average of international oil prices, exchange rate movements and other cost components before submitting recommendations to the federal government for approval.

Petroleum Minister Ali Pervaiz Malik has said the new pricing mechanism enables domestic fuel prices to reflect changes in global markets more quickly while improving transparency in petroleum pricing.

The latest reduction is consistent with softer international crude prices and lower import costs.