ISLAMABAD: The federal government has increased the price of petrol by Rs2.02 per litre while reducing the price of high-speed diesel (HSD) by Rs3.59 per litre, citing fluctuations in international oil prices.
Under the revised rates, petrol will now cost Rs391.30 per litre, while HSD will be available at Rs408.53 per litre.
According to a notification issued by the Petroleum Division, the new prices will remain effective from September 26 to September 28.
| Product | Previous price | New price | Change |
|---|---|---|---|
| Petrol | Rs389.28 | Rs391.30 | +Rs2.02 |
| High-speed diesel | Rs412.12 | Rs408.53 | -Rs3.59 |
Daily fuel price mechanism introduced
The latest revision comes as the government moves towards a daily petroleum pricing mechanism amid volatility in global oil markets.
The Oil and Gas Regulatory Authority (Ogra) has started publishing daily petroleum prices on its website, allowing changes in international oil prices to be reflected more quickly in domestic fuel rates.
Petroleum Minister Ali Pervaiz Malik said the daily prices are calculated using a seven-day average of international market prices, in line with international practices.
Under the new mechanism, Ogra will issue daily ex-depot prices for petrol and HSD based on the average international market price recorded over the preceding seven days.
The regulator will be authorised to announce daily prices without prior approval from the prime minister or the federal government.
However, prices notified on Fridays will remain unchanged during Saturday and Sunday.
Diesel price crosses Rs400 per litre as petrol rises above Rs375
Global oil volatility drives pricing changes
The government’s decision comes amid renewed volatility in international oil prices following heightened tensions in the Middle East.
Pakistan had previously moved to a weekly fuel price review mechanism after the regional conflict began on February 28, when Israel and the United States attacked Iran and Tehran shut the Strait of Hormuz.
The waterway had been a major route for global energy supplies before the conflict, with around one-fifth of the world’s energy supplies passing through it.
Tensions intensified after a fragile June truce between Tehran and Washington collapsed, raising concerns about further escalation and disruptions to energy flows through the strait.
Before the introduction of more frequent reviews, petroleum prices in Pakistan were revised on a fortnightly basis.
Changes to fuel import arrangements
An official document outlining the new pricing mechanism states that Ogra will publish daily Platts reference prices from July 1, 2026.
The document also says 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 government has also revised fuel import arrangements for the 2026-27 fiscal year.
Under the new framework, high-speed diesel imports will be routed 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 upliftment obligations may be barred from receiving fresh import permissions for up to nine months.
The framework also provides for daily pricing of kerosene oil and light diesel oil, with relevant authorities directed to ensure immediate implementation of the new mechanism.
