Petrol cut by Rs8 a litre, diesel by Rs7 from midnight

The federal government has cut petrol by Rs8 a litre to Rs338 and high-speed diesel by Rs7 to Rs371 for the November 11 pricing cycle, with the Oil and Gas Regulatory Authority's notification taking effect from midnight.

Minute Mirror, which reported the reduction, said the new rates apply to the November 11 arrangement and are to be charged at the pump after midnight tonight. Investify carried the same two figures, describing the move as another cut in petroleum prices.

Neither report gave the outgoing prices for the two products, so the size of the cut, Rs8 for petrol and Rs7 for diesel, is the only change they establish.

Petrol is bought by private car owners, motorcyclists and most public transport operators, and the monthly revision is read closely by households because it feeds directly into the cost of commuting. Diesel sets the cost of moving goods, running buses and trucks and powering tractors and tube wells on farms, so a change in its rate feeds into transport, agricultural and production costs.

Whether shops, transporters and service providers pass the saving on to consumers was not addressed in either report.

Prices are reviewed each month against international oil prices and the applicable domestic pricing mechanism. OGRA's notification is the instrument that fixes the rate charged at filling stations.

No statement from the finance ministry or from OGRA officials accompanied the notification in either report. Neither carried figures for kerosene, light diesel oil or other products whose rates are revised alongside petrol and diesel.

The November 11 rates apply from midnight.