Petrol falls to Rs390.23 per litre, while high-speed diesel rises by 31 paisa to Rs396.96 amid volatility in international oil markets.
ISLAMABAD: The federal government has reduced the price of petrol by Rs3.63 per litre while increasing the price of high-speed diesel (HSD) by 31 paisa per litre for October 16, 2026.
According to a notification issued by the Petroleum Division on Thursday, the price of petrol has been fixed at Rs390.23 per litre, while HSD will be available at Rs396.96 per litre.
The latest revision follows a day earlier adjustment on October 15, when the government increased the petrol price by Rs1.20 per litre and reduced the HSD price by 17 paisa per litre.
The daily adjustments reflect continued volatility in international oil markets amid geopolitical tensions and uncertainty over global fuel supplies.
Government introduces daily fuel pricing
On July 17, the government introduced a daily petroleum pricing mechanism, replacing the previous weekly review system. The change came amid renewed tensions involving the United States and Iran, which heightened concerns about global oil supplies and price fluctuations.
Under the mechanism, petroleum product prices are reviewed and notified daily to reflect movements in international oil prices and other relevant factors.
Pakistan imports a substantial proportion of its petroleum requirements, making domestic fuel prices sensitive to global crude oil movements, exchange rate fluctuations and supply disruptions.
Petrol relief scheme for motorcycles and small cars
On September 13, Prime Minister Shehbaz Sharif announced a special fuel relief scheme offering a subsidy of Rs100 per litre for motorcycles, three-wheeler rickshaws and cars with engine capacities of up to 800cc.
The proposed scheme was designed to protect lower-income consumers from rising fuel costs and cover an estimated 11.8 million beneficiaries.
Under the proposal, approximately 10 million two-wheeler users and 800,000 three-wheeler users would receive relief on up to 20 litres of petrol per month, providing a maximum monthly benefit of Rs2,000 per beneficiary.
Another one million owners of cars with engine capacities of up to 800cc would qualify for relief on 30 litres per month, translating into a maximum monthly benefit of Rs3,000.
Government tightens austerity and fuel conservation measures
On September 17, the government reintroduced austerity and fuel conservation measures in response to rising petroleum prices.
Under the measures, shops, markets, shopping malls, bazaars, departmental stores, grocery stores, general stores and kiryana shops were directed to close by 9pm throughout the week, according to a Cabinet Division notification.
Marriage halls, marquees and other commercial venues hosting festive events were required to close by 10pm. Restaurants, cafes, eateries, food outlets and standalone fruit and vegetable shops were permitted to operate until 11pm.
Takeaway and home delivery services were exempt from the timing restrictions.
Global oil prices remain volatile
International oil prices continued to face pressure from geopolitical developments, including conflicts in the Middle East, decisions by OPEC+, sanctions affecting oil-producing countries and potential disruptions to critical shipping routes such as the Strait of Hormuz and the Red Sea.
Brent crude futures were little changed on Thursday as investors assessed possible US steps to ease restrictions on the world’s so-called shadow fleet of oil tankers, while conflict in the Middle East continued to support a geopolitical risk premium.
The international benchmark rose by 2 cents, or 0.02%, to $106.08 per barrel at 12:14pm EDT (1614 GMT).
Meanwhile, US West Texas Intermediate (WTI) crude futures increased by $2.96, or 3.11%, to $98.05 per barrel, supported by a substantial drawdown in US crude inventories.
MUFG analysts said in a note that the ongoing conflict between Saudi Arabia and the Houthis was sustaining a geopolitical premium in oil markets, although energy infrastructure had not been attacked in the preceding several days.
For Pakistan, which relies heavily on imported petroleum, changes in international crude prices and shipping costs can quickly affect domestic fuel prices. Any disruption to oil supplies or major shipping routes could increase import costs and place additional pressure on consumers and the wider economy.