Petrol price rises by Rs2.84 to Rs349 per litre as the government passes on higher international fuel costs, while HSD increases to Rs374.31.
ISLAMABAD: The government has increased the price of petrol by Rs2.84 per litre, taking it to Rs349 per litre from September 4, 2026, bringing the fuel price close to the Rs350-per-litre mark.
The latest increase follows the government’s daily review of petroleum prices, under which domestic fuel prices are aligned with international market movements.
According to the latest government fuel-price notification, petrol was priced at Rs346.16 per litre on September 3. The revised price of Rs349 represents a 0.82% increase in a single day.
The government has retained the petroleum levy, taxes and commissions while passing on the full impact of higher international fuel prices to consumers.
International petrol prices drive increase
The latest increase was primarily attributed to higher international petrol prices.
The Platts Arab Gulf Mean Average for petrol rose from $107.83 per barrel on September 3 to $109.46 per barrel on September 4.
Consequently, the cost and freight component increased from $122.80 to $124.43 per barrel, while the rupee-denominated cost and freight rose from Rs214.45 to Rs217.29 per litre.
The petrol cost at Karachi Port also increased from Rs214.54 to Rs217.38 per litre.
Meanwhile, the ex-refinery/import price climbed from Rs235.86 to Rs238.70 per litre.
The price before the petroleum levy, Climate Support Levy and sales tax also increased from Rs261.16 to Rs264.00 per litre.
Petroleum levy remains unchanged
Despite the rise in the underlying cost of petrol, the government kept the petroleum levy at Rs80 per litre.
The Climate Support Levy also remained unchanged at Rs5 per litre, while sales tax continued to remain at zero, with petrol exempt from sales tax.
The government’s pricing documents state that the full impact of revisions in daily international prices is passed on within seven working days.
Petrol price reaches Rs349 per litre
Following the latest revision, motorists will now pay Rs349 per litre for petrol, excluding secondary freight.
Secondary freight refers to the cost of transporting petroleum products from an oil marketing company’s depot to individual petrol stations.
The latest increase takes petrol prices close to the Rs350-per-litre threshold, increasing fuel costs for motorists across the country.
High-speed diesel price also increases
The government has also increased the price of high-speed diesel (HSD).
HSD rose from Rs372.03 to Rs374.31 per litre, representing an increase of Rs2.28 per litre.
The increase in HSD also reflected higher international fuel prices, while the petroleum levy remained unchanged at Rs80 per litre.