Petrol now costs Rs389.14 per litre while high-speed diesel is priced at Rs424.04 under the government’s new daily pricing mechanism.
ISLAMABAD, September 19, 2026: The government has reduced the price of petrol by Rs1.65 per litre and high-speed diesel (HSD) by 88 paisas, citing fluctuations in international oil prices.
Following the latest revision, petrol will be available at Rs389.14 per litre, down from Rs390.79, while the price of HSD has been reduced from Rs424.92 to Rs424.04 per litre.
According to a notification issued by the Petroleum Division, the revised prices will remain effective from September 19 to September 21.
Daily fuel pricing mechanism
The latest adjustment comes under the government’s new daily petroleum pricing mechanism, under which the Oil and Gas Regulatory Authority (OGRA) has started publishing daily petroleum prices on its website.
The mechanism is intended to improve transparency and allow movements in international oil prices to be passed on to consumers more quickly.
Petroleum Minister Ali Pervaiz Malik said daily fuel prices are determined using a seven-day average of international market prices, in line with international practice.
Under the latest revision, petrol prices have fallen by Rs1.65 per litre, while HSD prices have declined by 88 paisas.
Global oil market volatility
The adjustment comes amid continued volatility in global oil markets following renewed tensions in the Middle East.
The government moved towards more frequent fuel price reviews after international oil market conditions became increasingly volatile following the conflict involving Israel, the United States and Iran.
Pakistan had previously revised petroleum prices on a fortnightly basis before moving to a weekly review mechanism.
Under the new system, the government has opted for daily price reviews to allow domestic fuel prices to respond more quickly to movements in international markets.
OGRA authorised to announce daily prices
An official document detailing the federal cabinet-approved petroleum pricing mechanism states that OGRA will issue daily ex-depot prices for petrol and HSD.
The prices will be calculated using average international market prices recorded over the preceding seven days.
The regulator will be authorised to announce daily prices without seeking prior approval from the prime minister or federal government.
However, prices notified on Fridays will remain unchanged on Saturdays and Sundays.
The framework also requires OGRA to publish daily Platts reference prices from July 1, 2026.
The document further states that the Petroleum Development Levy (PDL) cannot exceed the limit approved by the federal cabinet. Any change in the levy rate will require approval from the Finance Division.
The latest reduction in petrol and HSD prices reflects the government’s move towards a more responsive fuel pricing system, under which domestic rates are adjusted more frequently in line with international oil market movements.