Lahore : The government has increased the prices of petrol and high-speed diesel (HSD), raising the petrol rate by Rs12.90 per litre and diesel by Rs3.72 per litre amid volatility in international oil markets.
According to a notification issued by the Petroleum Division, the new prices will take effect from September 8, 2026.
Following the increase, petrol will now be sold at Rs358.77 per litre, compared with the previous price of Rs345.87. The price of high-speed diesel has been increased from Rs378.05 to Rs381.77 per litre.
Global oil market volatility
The latest increase comes amid renewed volatility in global oil markets following escalating tensions in the Middle East and disruptions affecting energy shipments through the Strait of Hormuz, one of the world’s key routes for oil supplies.
The government has also moved towards a new daily fuel price review mechanism, replacing the previous fortnightly and weekly systems.
Under the framework approved by the federal cabinet, the Oil and Gas Regulatory Authority (Ogra) will publish updated fuel prices on its website daily, with the aim of improving transparency and allowing domestic prices to respond more quickly to international market movements.
Petroleum Minister Ali Pervaiz Malik said last Friday that the new mechanism would use a rolling seven-day average of international petroleum prices, bringing Pakistan’s fuel-pricing system closer to international practices.
Daily fuel pricing mechanism
According to an official document, Ogra will determine the ex-depot prices of petrol and high-speed diesel based on international petroleum prices recorded during the preceding seven days.
The regulator will be authorized to announce daily prices without seeking prior approval from the prime minister or the federal government.
However, prices notified on Fridays will remain unchanged during Saturday and Sunday.
The document also states that Ogra will publish daily Platts reference prices from July 1, 2026.
The petroleum levy will remain subject to the ceiling approved by the federal cabinet. Any change in the levy rate will require approval from the Finance Division.
Changes in fuel imports
The federal government’s new framework has also revised arrangements for petroleum imports during fiscal year 2026-27.
Under the revised system, imports of high-speed diesel will be handled exclusively through Pakistan State Oil (PSO), while oil marketing companies will be permitted to import petrol according to their respective market shares.
The latest increase is expected to put additional pressure on transport and household expenses as consumers face higher fuel costs.
The move comes as the government seeks to make domestic petroleum prices more responsive to fluctuations in international oil markets while maintaining limits on petroleum levies.
