ISLAMABAD: The federal government has reduced the price of petrol by Rs1.70 per litre while increasing the price of high-speed diesel (HSD) by Rs1.39 per litre, with the revised rates taking effect from August 12, the Petroleum Division announced.
Under the new pricing, petrol will retail at Rs325.92 per litre, down from Rs327.62, while high-speed diesel will cost Rs382.25 per litre, up from Rs380.86.
The government said it continues to collect Rs114 per litre in taxes and duties on petrol and Rs100 per litre on high-speed diesel. Meanwhile, the petroleum levy on diesel has been increased by Rs2 to Rs76.28 per litre, while the levy on petrol remains unchanged at Rs80 per litre. The levy on kerosene also remains unchanged at Rs20.36 per litre.
Why Has Pakistan Switched to Daily Fuel Price Reviews?
The price adjustment comes as Pakistan implements a daily petroleum pricing mechanism, replacing the previous fortnightly and later weekly review systems amid heightened volatility in global oil markets.
Under the new framework approved by the federal cabinet, the Oil and Gas Regulatory Authority (OGRA) will determine daily ex-depot prices for petrol and high-speed diesel using the average international market prices recorded over the previous seven days.
Petroleum Minister Ali Pervaiz Malik said the daily pricing system aligns Pakistan with international practice and will enable global price fluctuations to be reflected more quickly in domestic fuel prices. OGRA has also begun publishing daily petroleum prices on its website to improve transparency.
The revised framework authorises OGRA to announce daily prices without requiring prior approval from the prime minister or the federal government. Prices announced on Fridays will remain unchanged over the weekend.
The government also introduced new fuel import arrangements for the 2026-27 fiscal year. Under the policy, Pakistan State Oil (PSO) will exclusively handle imports of high-speed diesel, while oil marketing companies will continue importing petrol according to their respective market shares.
The move follows renewed volatility in international oil markets driven by escalating tensions in the Middle East and disruptions to global energy supply routes.