Petrol price falls to Rs392.66 per litre from October 14, while high-speed diesel drops marginally to Rs396.82 under the daily fuel pricing mechanism.
ISLAMABAD: The federal government on Tuesday reduced the price of petrol by Rs2.71 per litre and high-speed diesel (HSD) by 3 paisas per litre, with the revised rates taking effect from October 14, 2026.
Following the adjustment, petrol will be available at Rs392.66 per litre, down from Rs395.37, while the price of high-speed diesel has been reduced from Rs396.85 to Rs396.82 per litre.
A notification issued by the Petroleum Division confirmed the revised prices.
The latest adjustment comes as the government continues to implement a daily petroleum pricing mechanism aimed at passing changes in international oil prices on to consumers more quickly.
The Oil and Gas Regulatory Authority (Ogra) has begun publishing daily petroleum prices on its website to improve transparency and provide consumers with timely information about fuel price movements.
Petroleum Minister Ali Pervaiz Malik said the daily prices are determined using a seven-day average of international market rates, in line with international practice.
Revised petrol and diesel prices
| Petroleum product | Previous price | New price | Change per litre |
| Petrol | Rs395.37 | Rs392.66 | -Rs2.71 |
| High-speed diesel | Rs396.85 | Rs396.82 | -Rs0.03 |
Daily fuel pricing mechanism
The government adopted the daily fuel price review system amid volatility in international oil markets following renewed hostilities in the Middle East.
Previously, petroleum prices were revised fortnightly. The government subsequently moved to weekly reviews after the conflict involving Israel, the United States and Iran began on February 28, disrupting regional stability and raising concerns over energy supplies through the Strait of Hormuz.
The strategic waterway is a major route for global oil and gas shipments, and disruption to shipping has contributed to uncertainty in international energy markets.
An official document outlining the federal cabinet-approved pricing framework states that Ogra will determine daily ex-depot prices for petrol and high-speed diesel based on average international market prices over the preceding seven days.
Under the mechanism, the regulator can announce daily prices without obtaining prior approval from the prime minister or the federal government. However, prices announced on Fridays will remain unchanged on Saturdays and Sundays.
The framework also provides for Ogra to publish daily Platts reference prices from July 1, 2026.
Petroleum levy subject to government limits
The pricing framework stipulates that the petroleum levy cannot exceed the ceiling approved by the federal cabinet. Any change in the levy rate requires approval from the Finance Division.
The daily pricing system is intended to improve transparency and enable international oil price movements to be reflected more frequently in domestic fuel rates, although the final retail prices remain subject to applicable taxes, levies and other components of the pricing formula.