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Fresh Fuel Price Reduction Announced
The federal government has reduced the prices of petrol and high-speed diesel, with the revised rates coming into effect immediately on August 5, 2026 .
According to the official notification, the price of petrol has been cut by Rs3.39 per litre to Rs328.56 per litre, while the price of high-speed diesel has been reduced by Rs4.07 per litre to Rs385.86 per litre .
Reasons for Price Reduction
The price cuts come as international crude oil prices continue to decline sharply, driven by renewed optimism over the possible reopening of the Strait of Hormuz and easing geopolitical tensions .
According to market reports, Brent crude fell nearly 5% to around $83 per barrel, while West Texas Intermediate (WTI) declined by more than 5% to approximately $79 per barrel . The government’s shift to a daily petroleum pricing mechanism, introduced after the Middle East conflict began on February 28, 2026, allows fuel prices to be updated daily based on a seven-day average of international market prices .
Implementation and Impact
The revised rates will remain in effect until the next price notification is issued tomorrow under the ongoing daily pricing system. The Oil and Gas Regulatory Authority (OGRA) now has the authority to announce daily ex-depot prices without requiring prior approval from the prime minister or the federal government . The back-to-back reductions mark the second consecutive day of fuel price cuts, with diesel—widely used in transport, agriculture, and industry—seeing a more significant reduction .
