The federal government has increased the prices of petrol and high-speed diesel (HSD), raising the cost of petrol by Rs5.77 per litre and diesel by Rs6.47 per litre under the country’s newly introduced daily petroleum pricing mechanism.
According to the latest notification, the new petrol price has been set at Rs331.20 per litre, compared with the previous rate of Rs325.43. Meanwhile, the price of high-speed diesel has risen from Rs383.95 to Rs390.45 per litre.
The revised rates will take effect from August 18, 2026.
Kerosene Price Also Increased
The Oil and Gas Regulatory Authority (Ogra) has also increased the price of kerosene oil.
The price of kerosene has been raised by Rs6.88 per litre, taking it to Rs296.63 per litre.
Ogra has now begun publishing petroleum prices on a daily basis as part of efforts to make the pricing process more transparent and allow changes in international oil markets to be reflected more quickly in domestic fuel prices.
Petroleum Minister Ali Pervaiz Malik said the daily prices are calculated using a seven-day average of international petroleum prices, a mechanism intended to reflect global market movements more rapidly.
Petrol Taxes Exceed Rs100 Per Litre
The government continues to collect substantial taxes and levies on petroleum products.
According to the details accompanying the latest price revision, the government charges around Rs114 per litre in taxes on petrol, while taxes and duties on high-speed diesel remain at approximately Rs100 per litre.
The overall price consumers pay at petrol stations therefore reflects not only international oil prices but also petroleum levies, taxes, duties and other components included in the pricing formula.
Revised fuel rates under daily price mechanism:
| Effective date | Products | Old rates | New rates | Changes in prices Rs/litre |
| August 18 | Petrol | 325.43 | 331.2 | +5.77 |
| August 18 | High-speed diesel | 383.95 | 390.45 | +6.47 |
Why Pakistan Shifted to Daily Fuel Pricing
The move toward daily fuel price reviews comes amid continued volatility in international oil markets and heightened tensions in the Middle East.
The government had previously moved from a fortnightly review mechanism to weekly price adjustments following the escalation of conflict in the region. The new framework goes a step further by allowing petroleum prices to be reviewed and announced daily.
The geopolitical situation has raised concerns about disruptions to global energy supplies, particularly because the Strait of Hormuz is a major route for international oil and gas shipments.
Pakistan, as a major importer of petroleum products, remains vulnerable to changes in global crude oil prices and international shipping and supply conditions.
Govt hikes petrol by Rs1.63, diesel by Rs1.55 per litre under daily pricing system
How the Daily Pricing System Works
Under the new mechanism approved by the federal cabinet, Ogra will determine and announce daily ex-depot prices for petrol and high-speed diesel.
The prices will be calculated using the average international market prices recorded during the previous seven days.
Importantly, Ogra will be authorised to announce the daily prices without seeking separate approval from the prime minister or federal government for every adjustment.
However, prices announced on Fridays will remain unchanged during Saturday and Sunday, according to the approved framework.
The document also requires Ogra to publish daily Platts reference prices, while any change to the petroleum levy will require approval from the Finance Division.
New Rules for Fuel Imports
The government has also revised petroleum import arrangements for the 2026-27 fiscal year.
Under the new framework, imports of high-speed diesel will be handled exclusively through Pakistan State Oil (PSO). Oil marketing companies, meanwhile, will be allowed to import petrol according to their respective market shares.
Companies that fail to meet their import or fuel-upliftment obligations could face restrictions on receiving new import permissions for up to nine months.
The government has also directed that kerosene and light diesel oil prices be determined on a daily basis.
The latest increase means Pakistani consumers will now face higher fuel costs as the government continues adjusting domestic petroleum prices more closely in line with movements in international markets.
