Pakistan reduces petrol price by Rs3.19 per litre, raises diesel rate by Rs2.25

Pakistan’s federal government has lowered petrol prices by Rs3.19 per litre while increasing the rate of high-speed diesel by Rs2.25 introducing another adjustment in response to changing international oil market conditions.

Pakistan’s federal government has lowered petrol prices by Rs3.19 per litre while increasing the rate of high-speed diesel by Rs2.25 introducing another adjustment in response to changing international oil market conditions.

Under the revised rates petrol will now cost Rs376.06 per litre compared with the previous price of Rs379.25. High-speed diesel has increased from Rs395.82 to Rs398.07 per litre according to a notification issued by the Petroleum Division. The new prices take effect on October 28.

The latest revision comes as international petroleum markets remain unsettled amid renewed tensions in the Middle East. Changes in global oil prices have prompted the government to introduce a daily fuel price review system replacing the previous fortnightly arrangement and the weekly mechanism adopted earlier this year.

The Oil and Gas Regulatory Authority (Ogra) has started publishing daily petroleum prices on its website as part of efforts to improve transparency and respond more quickly to movements in international markets.

Petroleum Minister Ali Pervaiz Malik said the revised rates are calculated using the average international prices recorded over the preceding seven days, following a method used internationally.

Under the new framework approved by the federal cabinet Ogra is authorised to announce daily ex-depot prices for petrol and high-speed diesel without obtaining 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.

The document specifies that the petroleum levy 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 changed the rules for import of petroleum for 2026-27 fiscal. Under the new arrangements, high speed diesel imports would be handled by Pakistan State Oil (PSO) only while other oil marketing companies would be allowed to import petrol as per their market shares.

Companies that fail to meet their import obligations or the required targets for lifting fuel could be barred from making fresh imports for up to nine months.

The framework also provides for daily pricing of kerosene oil and light diesel oil and the authorities concerned have been instructed to implement the revised system with immediate effect.

The decision arises amid growing concerns regarding the potential impact on global energy supplies due to escalating regional tensions and the uncertainty surrounding shipping routes through the Strait of Hormuz, a critical passage for oil and gas shipments worldwide.