Petrol reaches Rs375.82 per litre while HSD climbs to Rs403.32 as higher international oil prices push up domestic fuel costs.
KARACHI: Fuel prices in Pakistan recorded a sharp increase during the week, with the price of petrol rising by nearly Rs30 per litre and High Speed Diesel (HSD) increasing by more than Rs25 per litre, according to the latest petroleum price publications.
A comparison of fuel price notifications effective September 5 and September 12, 2026 shows that the price of petrol increased from Rs345.87 to Rs375.82 per litre, representing a rise of Rs29.95 per litre.
Meanwhile, the price of HSD climbed from Rs378.05 to Rs403.32 per litre, an increase of Rs25.27 per litre.
International oil prices drive increase
The sharp increase was primarily driven by higher international petroleum prices reflected in Pakistan’s fuel pricing formula.
For petrol, the Platts Arab Gulf Mean Average increased from $111.50 to $122.81 per barrel, while the premium, including freight, rose from $11.79 to $16.28 per barrel.
As a result, the combined petrol cost and freight increased from $123.28 to $139.09 per barrel.
The higher international cost pushed petrol’s cost at Karachi Port from Rs215.95 to Rs242.79 per litre. The ex-refinery/import price subsequently increased from Rs235.42 to Rs265.36 per litre.
HSD price also jumps
HSD also recorded a substantial increase following a rise in international crude prices.
The Dubai Crude Oil Platts Arab Gulf Mean Average increased from $97.86 to $112.34 per barrel.
The resulting cost and freight rose from $146.25 to $160.73 per barrel, pushing the cost of HSD at Karachi Port from Rs255.50 to Rs280.77 per litre.
The HSD ex-refinery/import price subsequently increased from Rs271.18 to Rs296.45 per litre.
Petroleum levy remains unchanged
Despite the significant increase in international oil prices, the government’s petroleum levy remained unchanged at Rs80 per litre for both petrol and HSD.
The Climate Support Levy also remained unchanged at Rs5 per litre, while sales tax was zero for both products under the latest pricing publications.
The unchanged levies indicate that the latest increase in retail fuel prices was largely attributable to higher international petroleum costs rather than an increase in domestic government charges.
Exchange rate has limited impact
The State Bank of Pakistan’s average exchange rate used in the pricing formula changed only marginally, from Rs277.61 to Rs277.52 per US dollar for petrol and HSD.
The marginal movement in the exchange rate suggests that the main pressure on domestic fuel prices came from higher international petroleum price components rather than significant rupee depreciation.
Seven-day price adjustment mechanism
The latest price publication states that the full impact of revisions in daily international petroleum prices is passed on over seven working days.
This mechanism explains the substantial movement in domestic fuel prices following the recent increase in international petroleum benchmarks.
With international crude and petroleum product prices rising sharply, the latest adjustment has resulted in petrol and HSD prices reaching significantly higher levels in Pakistan.