Pakistan cuts petrol to Rs376.06 per litre and raises high-speed diesel to Rs398.07 as the government shifts to a daily petroleum pricing mechanism.
ISLAMABAD: Pakistan’s federal government has reduced the price of petrol by Rs3.19 per litre while increasing high-speed diesel by Rs2.25, with the revised rates taking effect on October 28 under a new system of daily petroleum price reviews.
Under the revised prices, petrol now costs Rs376.06 per litre, down from Rs379.25, while high-speed diesel has risen from Rs395.82 to Rs398.07 per litre, according to a notification issued by the Petroleum Division.
The latest adjustment comes amid continued uncertainty in international oil markets and renewed tensions in the Middle East, which have raised concerns about global energy supplies and shipping routes.
Government introduces daily fuel price reviews
The government has replaced the previous fortnightly petroleum pricing arrangement with a daily review mechanism, following an earlier shift to weekly revisions.
The Oil and Gas Regulatory Authority (Ogra) has begun publishing daily petroleum prices on its website as part of efforts to improve transparency and respond more quickly to fluctuations in international markets.
Petroleum Minister Ali Pervaiz Malik said the revised rates are calculated using average international prices recorded over the preceding seven days, following a method used internationally.
Under the framework approved by the federal cabinet, Ogra is authorised to announce daily ex-depot prices for petrol and high-speed diesel without seeking prior approval from the prime minister or the federal government for each revision.
However, prices announced on Fridays will remain unchanged over the weekend. The mechanism also requires Ogra to publish daily Platts reference prices from July 1, 2026.
Petroleum levy and import rules revised
The revised framework places limits on the petroleum levy, stipulating that it cannot exceed the ceiling approved by the federal cabinet. Any change to the levy rate requires approval from the Finance Division.
The government has also revised petroleum import arrangements for the 2026-27 fiscal year.
Under the new rules, Pakistan State Oil (PSO) will be responsible for importing high-speed diesel, while other oil marketing companies will be permitted to import petrol according to their respective market shares.
Companies that fail to meet their import obligations or required fuel-lifting targets could face restrictions on fresh imports for up to nine months.
The framework also provides for daily pricing of kerosene oil and light diesel oil. The relevant authorities have been directed to implement the revised system with immediate effect.
Regional tensions add to market uncertainty
The pricing changes come as escalating tensions in the Middle East raise concerns about potential disruptions to international energy supplies.
The Strait of Hormuz, a critical passage for global oil and gas shipments, remains central to concerns about the security of shipping routes and their potential impact on energy markets.
Under the new mechanism, daily price reviews are intended to allow domestic petroleum prices to respond more quickly to international market movements. The actual impact on consumers will depend on subsequent pricing decisions and changes in global oil prices.
For motorists, the latest revision brings a reduction in petrol costs but a further increase in diesel prices, which are important for transport and goods movement.
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