Global crude prices slid about 2 per cent, and the federal government reduced the price of petrol by Rs5.45 per litre and high-speed diesel by Rs3.68, setting new retail rates at Rs369.06 and Rs391.52 respectively, according to an Oil and Gas Regulatory Authority notification issued on Tuesday. The updated rates took effect on November 4, 2026.
Refineries Absorb Costs to Lower Pump Prices
Local oil refineries are contributing to the petroleum levy by bearing a cumulative financial impact of Rs15 billion per month under a 30-day arrangement announced by the government. Petroleum Minister Ali Pervaiz Malik thanked the refineries during a joint press conference with Information Minister Attaullah Tarar. The chief executives of Attock Refinery Limited, Cnergyico PK Limited and National Refinery Limited, and the managing director and CEO of Pakistan Refinery Limited, had earlier represented their concerns regarding a revised Motor Spirit pricing mechanism effective October 31, 2026, which they argued forced them to surrender about Rs 49.02 per litre as Petroleum Levy without matching recoveries in ex-refinery prices.
I am grateful that they listened to our appeal and absorbed roughly a Rs15 increase that was coming due for petrol on Friday, helping the government maintain prices
Information Minister Attaullah Tarar stated earlier on Tuesday that Prime Minister Shehbaz Sharif had directed relevant authorities to take steps to protect vulnerable sections of society and develop a gas supply plan for the coming winter. This industry contribution enabled a reduction of Rs14.71 per litre in the consumer-end price compared with what it would have reached otherwise. Malik also noted that the government is considering a similar pricing framework for liquefied petroleum gas (LPG).
Taxes Remain High Despite Recent Relief
The government continues to levy Rs114 per litre in taxes and duties on petrol, alongside Rs100 per litre on high-speed diesel.
High-speed diesel reached a peak of Rs520.35 per litre on April 3, while petrol peaked at Rs458.41 per litre on the same date. These figures followed the onset of the conflict on February 28, when the US-Iran war broke out and triggered market volatility earlier in the year.
Crude Benchmarks Fall on Global Markets
Brent futures fell $1.63, or 2pc, to $103.14 a barrel, while US West Texas Intermediate crude fell 67 cents, or 1pc, to $95.79 on Tuesday.