ISLAMABAD: The federal government has reduced the prices of petroleum products, cutting petrol by Rs3.40 per litre and high-speed diesel by Rs7.76.
Following the reduction, petrol will cost Rs374.51 per litre, while the new price of high-speed diesel has been set at Rs395.20 per litre.
Pakistan's Petroleum Division has told oil refineries to follow a new petrol pricing formula as tensions between Iran and the United States continue to affect fuel supplies.
The division sent letters to the refineries after the cabinet approved the changes on Friday.
Under the new mechanism, the import price of petrol will be set according to the actual import cost of the relevant Pakistan State Oil (PSO) cargo. If that figure is not available for daily pricing, the premium, incidentals and customs duty from the last available cargo may be used.
Earlier, Oil prices sank more than 6% on Monday, the eve of crucial midterm elections in the United States, as signals that Tehran and Washington were ready to resume talks boosted hopes of ending the Middle East war.
Brent North Sea crude fell 6% to $106.60 per barrel, while West Texas Intermediate (WTI) dropped 6.4% to $97.49 per barrel.
The Axios news outlet reported that US Vice President JD Vance had sent a letter to Iranian national security chief Mohsen Rezaei about possible new talks, marking the highest-level move in months.
Iran meanwhile said it was ready to reopen the Strait of Hormuz within two days should the United States agree to ending the war on all fronts, among other conditions related to the conflict.
