The government has increased the prices of petrol and high-speed diesel (HSD) by Rs5.58 and Rs4.18 per litre, respectively, citing fluctuations in international oil markets.
According to a notification issued by the Petroleum Division on Tuesday, the price of petrol has been increased from Rs358.77 to Rs364.35 per litre, while the price of high-speed diesel has risen from Rs381.77 to Rs385.95 per litre.
The revised rates will come into effect from September 9, 2026.
| Fuel | Previous Price | New Price | Increase |
|---|---|---|---|
| Petrol | Rs358.77 | Rs364.35 | Rs5.58 |
| High-Speed Diesel | Rs381.77 | Rs385.95 | Rs4.18 |
The latest increase comes as the government implements a new daily mechanism for reviewing petroleum prices.
Under the new framework, the Oil and Gas Regulatory Authority (OGRA) will calculate and publish daily ex-depot prices for petrol and HSD based on the average international market prices recorded over the preceding seven days.
Petroleum Minister Ali Pervaiz Malik said the seven-day average was being used in line with international practice. The new system is intended to allow changes in global oil prices to be reflected in domestic fuel rates more quickly.
OGRA has also started publishing daily petroleum price information on its website, a step aimed at improving transparency in the pricing process.
Why Has the Government Changed the Pricing Mechanism?
The shift comes amid continued volatility in international oil markets and renewed tensions in the Middle East.
Previously, petroleum prices in Pakistan were generally revised on a fortnightly basis. Following the escalation of conflict in the region, the government first moved toward a weekly review mechanism before adopting the daily system.
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The geopolitical situation has raised concerns about global energy supplies, particularly because of disruptions and risks surrounding the Strait of Hormuz, a crucial route for international oil and gas shipments.
The waterway has historically carried a significant share of global energy supplies, meaning prolonged disruption can put upward pressure on international crude prices and, in turn, affect fuel prices in importing countries such as Pakistan.
How Will Daily Pricing Work?
An official document approved by the federal cabinet outlines the main features of the new pricing framework.
Under the mechanism, OGRA will be authorised to announce daily petroleum prices without seeking separate approval from the prime minister or federal government for each revision.
However, prices notified on Fridays will remain unchanged on Saturdays and Sundays, providing continuity over the weekend.
The framework also states that the petroleum levy cannot exceed the limit approved by the federal cabinet. Any change in the levy rate will require approval from the Finance Division.
The document further directs OGRA to publish daily Platts reference prices, which are used as an international benchmark in petroleum pricing.
New Rules for Fuel Imports
The new framework also includes changes to petroleum import arrangements for the 2026-27 fiscal year.
Under the revised system, imports of high-speed diesel will be handled exclusively through Pakistan State Oil (PSO), while oil marketing companies will be allowed to import petrol according to their respective market shares.
Companies that fail to meet their import obligations or required fuel upliftment levels could face restrictions on obtaining fresh import permissions for up to nine months.
The framework also provides for daily pricing of kerosene oil and light diesel oil.
With the new mechanism now in effect, domestic fuel prices are expected to respond more frequently to movements in international oil markets, potentially resulting in both quicker increases and quicker reductions when global prices change.
