ISLAMABAD: The government on Monday increased the price of petrol by Rs4.61 per litre and reduced the price of high-speed diesel (HSD) by Rs1.96 under the newly introduced daily petroleum pricing mechanism.
Petrol will now cost Rs393.75 per litre, while HSD will be priced at Rs422.08 per litre, according to a notification issued by the Petroleum Division. The revised rates will take effect on September 22.
The changes were made in response to fluctuations in international oil prices. Under the new mechanism, the Oil and Gas Regulatory Authority (OGRA) will calculate daily petroleum prices based on a seven-day average of international market prices.
Why Has the Government Introduced Daily Fuel Price Reviews?
The government shifted from fortnightly and weekly reviews to a daily pricing mechanism amid volatility in global oil markets and disruptions linked to renewed tensions in the Middle East.
Petroleum Minister Ali Pervaiz Malik said the daily prices would be based on international market trends, allowing changes in global oil prices to be reflected more quickly in domestic fuel prices.
How Will the New Petroleum Pricing Mechanism Work?
Under the federal cabinet-approved framework, OGRA will issue daily ex-depot prices for petrol and HSD without requiring prior approval from the prime minister or federal government.
Prices notified on Fridays will remain unchanged over the weekend. The petroleum levy will remain within the limit approved by the federal cabinet, while any change in the levy will require approval from the Finance Division.
The framework also provides for revised import arrangements for the 2026-27 fiscal year. High-speed diesel imports will be handled exclusively through Pakistan State Oil, while oil marketing companies will be permitted to import petrol according to their market shares.
Kerosene oil and light diesel oil will also be subject to daily price determination under the new mechanism.