The federal government on Monday reduced the prices of petrol and high-speed diesel (HSD), extending a series of fuel price adjustments 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 Rs4.08 per litre, bringing the new ex-depot price down to Rs331.95 per litre.

The price of high-speed diesel (HSD) has been cut by Rs2.45 per litre, lowering its new ex-depot price to Rs389.93 per litre.

The revised prices will take effect from midnight on August 4.

The latest reduction follows a marginal cut announced on Friday, when petrol prices were lowered by 12 paise per litre and HSD by 66 paise per litre under the government’s daily pricing mechanism.

Pakistan replaced its weekly petroleum pricing system with a daily mechanism earlier this year, under which the Oil and Gas Regulatory Authority (OGRA) determines ex-depot prices using a rolling seven-day average of international oil prices and other cost factors.

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

The latest price cut comes as international oil prices fell sharply on Monday after US President Donald Trump held off on a fresh attack on Iran, raising hopes of renewed diplomacy that could increase oil supplies from the Gulf.

Oil prices fell about 5% to a three-week low on Monday after US President Donald Trump held off on a fresh ​attack on Iran in the hope of sealing a quick deal that could boost oil supplies from the Gulf.

Brent futures fell $4.19, or 4.8%, to $83.74 a barrel ‌at 12:40 p.m. ET (1640 GMT), while US West Texas Intermediate (WTI) crude fell $4.92, or 5.8%, to $79.75.