ISLAMABAD: The federal government has reduced the prices of petrol and high-speed diesel (HSD) by Rs1.49 and Rs2.73 per litre, respectively, citing changes in international oil prices.
Under the revised rates, petrol will cost Rs387.54 per litre, while HSD will be available at Rs402.24 per litre.
According to a Petroleum Division notification, the new prices will take effect from September 30.
The reduction comes as the government continues implementing a daily fuel price review mechanism aimed at reflecting movements in international oil markets more quickly.
Revised petrol and diesel prices
| Product | Previous price | New price | Change |
|---|---|---|---|
| Petrol | Rs389.03 | Rs387.54 | -Rs1.49 |
| High-speed diesel | Rs404.97 | Rs402.24 | -Rs2.73 |
The Oil and Gas Regulatory Authority (Ogra) has also started publishing daily petroleum prices on its website as part of efforts to improve transparency.
Petroleum Minister Ali Pervaiz Malik said the daily prices are calculated using a seven-day average of international market prices, in line with international practice.
Government shifts to daily fuel price reviews
The government adopted the daily review mechanism amid increased volatility in global oil prices following renewed tensions in the Middle East.
Previously, petroleum prices were revised every two weeks. The government later introduced a weekly review mechanism after the conflict in the Middle East began on February 28, when Israel and the United States attacked Iran and Tehran subsequently shut the Strait of Hormuz.
The waterway was a major route for global energy supplies before the conflict, with around one-fifth of the world’s energy supplies passing through it.
Tensions increased after a fragile June truce between Tehran and Washington collapsed, raising concerns about further disruption to regional energy flows.
Govt raises petrol price by Rs2.02, cuts HSD by Rs3.59 per litre
How the new pricing mechanism works
Under the new framework approved by the federal cabinet, Ogra will determine and announce daily ex-depot prices for petrol and HSD.
The prices will be calculated using the average international market rates recorded over the preceding seven days.
Ogra will have the authority to announce daily prices without seeking prior approval from the prime minister or federal government.
However, prices announced on Fridays will remain unchanged on Saturdays and Sundays.
The framework also requires Ogra to publish daily Platts reference prices. The petroleum levy cannot exceed the limit approved by the federal cabinet, while any change in the levy rate will require approval from the Finance Division.
Changes to fuel import arrangements
The framework also introduces revised petroleum import arrangements for the 2026-27 fiscal year.
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 or fuel upliftment obligations may be denied fresh import permissions for up to nine months.
The prices of kerosene oil and light diesel oil will also be determined daily under the new mechanism, with relevant authorities directed to ensure its implementation.
