Petrol and diesel prices have been cut again for 4 November under the daily pricing mechanism, with the Oil and Gas Regulatory Authority notifying reductions that take effect from 4 November. The cuts follow the pattern of daily price adjustments that has replaced the previous weekly system, and they reflect movements in international oil markets.
OGRA notified a cut effective 4 November under which petrol is down by Rs5.45 per litre to Rs369.06 per litre. High-speed diesel is down by Rs3.68 per litre to Rs391.52, from Rs395.20. Those new prices will apply to consumers buying fuel from 4 November, and they represent a further reduction after recent movements in the market.
Under a new pricing mechanism announced a day earlier for 30 days, oil refineries will contribute to the petroleum levy by bearing a cumulative impact of Rs15 billion. That arrangement is part of the framework within which the latest prices have been set. The contribution by refineries, spread over the 30-day period, is intended to absorb part of the cost pressures in the system, rather than passing the full impact directly to consumers through the levy.
For high-speed diesel, the drop reflects international trends, mainly a decline in the global HSD crack spread from USD 41.89 to USD 38.00 per barrel. The crack spread measures the difference between the price of crude oil and the price of refined products, and a decline in that spread can translate into lower refined product prices. In this case, the fall in the HSD crack spread is cited as the main driver of the diesel price reduction.
International benchmarks for both fuels also moved lower. The international petrol benchmark fell to USD 115.49 per barrel from USD 118.62, although the premium including freight remained as high as USD 25.52 per barrel. The HSD benchmark fell to USD 112.20 per barrel from USD 114.31. Those benchmark movements are consistent with the direction of domestic prices, even though the premium on petrol, including freight, remains elevated.
Petroleum Minister Ali Pervaiz Malik has said fuel prices are fixed daily due to international market fluctuations amid hostilities between Iran and the United States, in order to pass the impact to consumers immediately. That explanation links the daily mechanism directly to the current international situation. When markets are moving quickly because of geopolitical tensions, a daily mechanism allows changes — whether up or down — to be reflected in domestic prices without the lag that a weekly system would involve.
The daily mechanism replaced a weekly one in early March after being implemented in July, according to The Standard’s account. That history should be read carefully, as reported: the account describes a mechanism implemented in July and a replacement of the weekly system in early March. The precise sequence, as presented by The Standard, is that the daily approach superseded the weekly approach, and it is now the system under which prices are being set each day.
What happens next will depend on international markets. If benchmarks continue to fall, further cuts could follow under the daily mechanism. If markets rise, whether because of the Iran-US hostilities or other factors, prices could move up just as quickly. The daily system is designed to pass those movements through immediately, in both directions, which means consumers may see more frequent changes than they did under the weekly system.
For consumers, the immediate effect of the 4 November notification is a lower price at the pump for both petrol and diesel. Petrol at Rs369.06 per litre and diesel at Rs391.52 per litre are the new reference points, and they will remain in place until the next daily adjustment. The unchanged levies and margins mean that the reduction is driven by international benchmarks and the refinery contribution, rather than by a change in taxes.
Source: Business Recorder and The Standard, 4 November 2026
