Pakistan’s federal government has increased the prices of petroleum products, raising petrol by Rs1.63 per litre and high-speed diesel (HSD) by Rs1.55 per litre, with the revised rates taking effect from July 29, 2026.
The increase follows the implementation of the country’s new daily fuel pricing mechanism, under which fuel prices are adjusted based on international market trends.
New petrol and diesel prices
According to the latest notification, the revised prices are:
| Product | Previous Price | New Price | Increase |
|---|---|---|---|
| Petrol | Rs334.18 | Rs335.81 | Rs1.63 |
| High-Speed Diesel | Rs386.83 | Rs388.38 | Rs1.55 |
| Kerosene Oil | Rs301.14 | Rs303.10 | Rs1.96 |
The revised rates came into effect on July 29, 2026.
Daily fuel pricing mechanism
The government has replaced the previous fortnightly and weekly review systems with a daily pricing model to ensure domestic fuel prices reflect international market movements more quickly.
Under the new framework:
- Fuel prices are calculated using the previous seven-day average of international oil prices.
- The Oil and Gas Regulatory Authority (OGRA) announces daily ex-depot prices.
- No prior approval from the prime minister or the federal cabinet is required for routine daily price notifications.
- Prices announced on Fridays remain unchanged throughout Saturday and Sunday.
Petroleum Minister Ali Pervaiz Malik said the mechanism improves transparency and aligns Pakistan’s fuel pricing with international standards.
Why fuel prices are changing daily
The government adopted the daily pricing mechanism following continued volatility in global crude oil markets caused by renewed tensions in the Middle East.
Earlier, Pakistan shifted from fortnightly to weekly fuel price revisions after regional conflict disrupted global energy markets and affected oil supply routes, including concerns surrounding the Strait of Hormuz.
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Officials believe daily adjustments will help pass both increases and decreases in international oil prices to consumers more efficiently.
Changes in fuel import policy
The government has also revised fuel import arrangements for the 2026-27 fiscal year.
Key changes include:
- Pakistan State Oil (PSO) will exclusively import high-speed diesel.
- Oil marketing companies will import petrol according to their market share.
- Companies failing to meet import obligations may lose import permissions for up to nine months.
- Kerosene oil and light diesel oil prices will also be revised daily.
With global oil markets remaining volatile, fuel prices in Pakistan are expected to continue changing under the new daily review system. Consumers and businesses may experience more frequent price adjustments depending on international crude oil trends and exchange rate movements.
