Petrol costs Rs 330 a litre from today, Saturday 14 November, after a cut of Rs 2 announced on Friday night. High-speed diesel stays at Rs 360. That makes five price changes in eight days, all of them downwards.
What changed this week
On Friday 7 November petrol was Rs 346 and diesel Rs 378. Then came a run of cuts: to Rs 338 and Rs 371 on the 11th (the biggest single step, Rs 8 off petrol), Rs 335 and Rs 364 on the 12th, Rs 332 and Rs 360 on the 13th, and Rs 330 for petrol today, with diesel unchanged. Over the week petrol is down Rs 16 a litre and diesel Rs 18, as Daily Pakistan tallied.
The prices are announced by OGRA under a pricing mechanism approved by the federal government and notified by the Petroleum Division. Until July they were revised weekly; on 17 July the government announced a mechanism that revises them daily, following international markets, which is why the pump price now moves by a rupee or three at a time rather than by Rs 10 once a fortnight, as The Express Tribune explained when the Rs 335 price was set.
Why it is falling
Oil markets have been volatile since the war involving Iran, with renewed tension between the United States and Iran keeping prices high. This month the pressure has eased. On Friday the International Energy Agency said world oil supply has overtaken demand for the first time since that war began, reported by Dawn. Crude benchmarks were heading for a second weekly fall, with Brent around $96 a barrel and WTI under $89, according to Daily Pakistan’s report. Because local prices now track those markets daily, a cheaper barrel abroad reaches the pump within days.
There is also a local cushion: on 2 November the government said refineries would absorb about Rs 15 billion a month so that petrol sells roughly Rs 15 a litre below the full international rate, per the Tribune.
What it means at the pump
For a motorbike taking 10 litres, a full tank costs Rs 160 less than it did a week ago. A small car taking 35 litres is Rs 560 cheaper to fill. For anyone running a diesel van or pickup, 100 litres now costs Rs 1,800 less than on 7 November. Transport costs follow fuel with a lag of some weeks.
What to watch
Daily revision cuts both ways. The same mechanism that passed on this week’s falls will pass on any rise just as quickly, so the price on the board tonight can differ from this morning’s. What moves it is the international crude price, the rupee against the dollar, and the levy the government chooses to charge. Expect small steps, up or down, rather than one big announcement, and check the board before a long drive.
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