Pakistan has reduced petrol and high-speed diesel prices under its new daily fuel pricing mechanism, effective from September 23.
ISLAMABAD: The government has reduced the prices of petrol and high-speed diesel (HSD) by Rs1.70 and Rs3.12 per litre, respectively, citing fluctuations in international oil prices.
Under the latest revision, petrol will now cost Rs392.05 per litre, down from Rs393.75, while the price of high-speed diesel has been reduced to Rs418.96 per litre from Rs422.80.
According to a notification issued by the Petroleum Division, the revised prices will take effect from September 23, 2026.
New petrol and diesel prices
Under the latest daily pricing mechanism, the revised rates are:
| Petroleum product | Previous price | New price | Reduction |
| Petrol | Rs393.75/litre | Rs392.05/litre | Rs1.70 |
| High-speed diesel | Rs422.80/litre | Rs418.96/litre | Rs3.12 |
The Oil and Gas Regulatory Authority (OGRA) has also started publishing daily petroleum prices on its website as part of efforts to improve transparency and enable fluctuations in international oil prices to be passed on to consumers more promptly.
Petroleum Minister Ali Pervaiz Malik said daily prices are determined using a seven-day average of international market prices, in line with international practice.
Government shifts to daily fuel pricing
The latest reduction comes amid continued volatility in global oil markets following renewed hostilities in the Middle East.
Against this backdrop, the government decided to move towards a daily petroleum price review mechanism, replacing the previous fortnightly system.
The government had initially introduced a weekly fuel price review mechanism following the escalation of conflict in the Middle East on February 28, when Israel and the United States launched attacks on Iran, prompting Tehran to shut the Strait of Hormuz, a key global energy shipping route.
Tensions subsequently increased after a fragile ceasefire between Tehran and Washington broke down, raising concerns over a wider conflict and potential disruptions to energy supplies through the strategic waterway.
How the daily pricing mechanism works
An official document cited by Geo News outlined the federal cabinet-approved framework under which OGRA will determine and announce daily ex-depot prices for petrol and HSD.
Under the mechanism, petroleum prices will be calculated using the average international market prices recorded during the preceding seven days.
OGRA will have the authority to announce daily prices without obtaining prior approval from the Prime Minister or the federal government.
However, prices notified on Fridays will remain unchanged on Saturdays and Sundays.
The framework further requires OGRA to publish daily Platts reference prices from July 1, 2026.
The petroleum levy will remain subject to the limit approved by the federal cabinet, while any change in the levy rate will require approval from the Finance Division.
The daily pricing mechanism is intended to provide a more responsive framework for adjusting domestic fuel prices in line with movements in international oil markets.