Revised fuel prices take effect on October 21 under the daily pricing mechanism, with petrol reaching Rs382.02 and high-speed diesel Rs389.80 per litre.
ISLAMABAD: The federal government has increased the petrol price by 88 paisas per litre and high-speed diesel (HSD) by 53 paisas per litre amid volatility in the international oil market.
Following the latest revision, petrol will be available at Rs382.02 per litre, while high-speed diesel will cost Rs389.80 per litre, according to a notification issued by the Petroleum Division. The revised rates will take effect from October 21, 2026.
Under the new daily pricing mechanism, the Oil and Gas Regulatory Authority (Ogra) has begun publishing petroleum prices on its website to improve transparency and enable international oil price movements to be reflected in domestic rates more quickly.
Petroleum Minister Ali Pervaiz Malik said the daily prices are determined using a seven-day average of international market prices, in line with international practice.
Revised petroleum prices
Under the latest revision, petrol has increased from Rs381.14 to Rs382.02 per litre, while high-speed diesel has risen from Rs389.27 to Rs389.80 per litre.
The government adopted the daily fuel price review mechanism amid renewed hostilities in the Middle East and uncertainty surrounding global energy supplies.
Pakistan had previously shifted to weekly fuel price reviews following the outbreak of conflict in the Middle East on February 28, which disrupted energy markets and raised concerns over supplies through the Strait of Hormuz, a key route for global oil and gas shipments. Before the weekly system, petroleum prices were generally revised fortnightly.
How the daily fuel pricing system works
Under the federal cabinet-approved framework, Ogra will determine and announce daily ex-depot prices for petrol and high-speed diesel using international market prices recorded over the preceding seven days.
The regulator can announce daily prices without obtaining prior approval from the prime minister or the federal government. However, prices notified on Fridays will remain unchanged over the weekend.
The framework also provides for the publication of daily Platts reference prices from July 1, 2026.
Furthermore, the petroleum levy cannot exceed the ceiling approved by the federal cabinet, while any change in the levy rate requires approval from the Finance Division.
The new mechanism is intended to make domestic fuel pricing more responsive to international market movements, although daily changes in global oil prices will not necessarily translate into immediate equivalent changes at petrol stations because the system uses a seven-day average.