ISLAMABAD: Pakistan’s Oil and Gas Regulatory (OGRA) announced on Monday that it has reduced the prices of petrol and diesel as oil prices slumped by three percent, amid hopes of a peace deal between the United States and Iran following meetings between Irani and Qatari officials.

OGRA announced in a notification that the government has reduced the price of petrol by Rs3.40 per liter [$0.012] and diesel by Rs7.76 [$0.028] per liter, state-run Associated Press of Pakistan (APP) reported.

It said that petrol will now be sold for Rs374.51 [$1.353] per liter from Rs377.91 [$1.366] per liter. Similarly, the price of high-speed diesel has been cut from Rs402.96 [$1.456] to Rs395.20 [$1.428] per liter, the state media said.

“The revised prices will take effect from November 3, 2026,” APP said.

“The new prices have been determined in accordance with the petroleum products pricing mechanism issued by the federal government.”

Petrol is widely used in motorcycles and private vehicles in Pakistan, while high-speed diesel powers trucks, buses and agricultural machinery, making its price an important factor in transportation costs and food inflation.

Pakistan has also introduced targeted fuel subsidies for motorcycle riders, rickshaw drivers and owners of small cars to cushion the impact of high petroleum prices on lower-income households.

Iranian negotiators were in Doha on Sunday for a third consecutive day of talks with Qatari mediators aimed at ​pushing for a deal to end the US-Israeli war on Iran.

Iranian Foreign Minister Abbas Araqchi said ​on Sunday that the purpose of the “ongoing and progressing” talks was to continue consultations with the Qatari mediators, ‌adding ⁠Tehran was prepared for “both defense and diplomacy.”

Pakistan reduced prices as Brent crude futures fell $3.68, or 3.2 percent, to $109.75 a barrel by 07:07 a.m. Saudi time on Monday. Meanwhile, US West Texas Intermediate crude ​was at $100.69 a barrel, down $3.43, or 3.3 percent.

Brent ended October at its highest in six ​months amid concerns that the US-Iran conflict could escalate again after Tuesday’s US midterm ⁠elections.

“Oil is seeing a technical pullback this morning after last week’s strong gains,” said Tim ​Waterer, chief market analyst at KCM Trade.

“Lingering hopes of some form of diplomatic progress, combined with ​the absence of any meaningful military escalation over the weekend, have taken some of the immediate heat out of prices for now.”