Government cuts petrol price by Rs3.93, holds diesel at Rs396.96

The government reduced the price of petrol by Rs3.93 to Rs386.30 per litre on Friday, while leaving high-speed diesel unchanged at Rs396.96 per litre. The Petroleum Division said the revised prices take effect from 17 to 19 October 2026, a three-day window covering the weekend.

The Petroleum Division said the Oil and Gas Regulatory Authority revised ex-depot prices in line with the petroleum pricing mechanism set by the federal government. It attributed the change to global developments, including movements in Platts rates, premiums and incidentals.

The adjustment follows Wednesday's revision, when the government cut petrol by Rs3.63 to Rs390.23 per litre and raised high-speed diesel by Re0.31 to Rs396.96 per litre. The short interval between revisions reflects the mechanism's sensitivity to international benchmarks.

Oil prices steadied on Friday and were heading for weekly gains amid uncertainty over Middle East supplies and a larger-than-expected draw from US crude stockpiles, while European diesel margins dropped after an IEA move to release more of the fuel. Brent crude futures were up 36 cents, or 0.34%, at $106.28 a barrel at 1107 GMT, while US West Texas Intermediate crude futures were down 19 cents, or 0.19%, to $97.78.

For consumers and businesses, the petrol cut offers limited relief at the pump, while the unchanged diesel price keeps freight and transport costs steady. Fuel prices feed directly into inflation and the cost of doing business, making the fortnightly and now three-day revisions closely watched.