Petrol falls by Rs2.27 per litre and HSD by Rs3.56 as lower international oil and import-related costs reduce fuel prices from September 29.
ISLAMABAD: The government has reduced the prices of petrol and high-speed diesel (HSD) with effect from Tuesday, September 29, 2026, following a decline in average international oil prices and related import costs.
The official price calculations show that the retail price of petrol has fallen by Rs2.27 per litre, while the price of HSD has decreased by Rs3.56 per litre compared with the rates effective from September 26.
Petrol price falls to Rs389.03 per litre
The price of petrol has been reduced from Rs391.30 to Rs389.03 per litre, representing a decline of Rs2.27 per litre, or around 0.58 per cent.
The reduction was primarily driven by lower international and import-related costs.
The Platts Arab Gulf Mean average for petrol declined from $129.54 to $128.76 per barrel, while the premium, including freight, fell from $16.36 to $15.90 per barrel.
As a result, the cost and freight component decreased from $145.90 to $144.66 per barrel.
The average State Bank of Pakistan exchange rate used in the calculation also edged down from Rs277.36 to Rs277.34 per US dollar.
Consequently, the cost and freight component in Pakistani rupees declined from Rs254.54 to Rs252.36 per litre. Petrol’s cost at Karachi Port subsequently fell from Rs254.96 to Rs252.72 per litre.
Petrol pricing components
The exchange-rate adjustment for petrol declined sharply from Rs1.90 to Rs0.77 per litre.
However, customs duty increased from Rs23.68 to Rs24.78 per litre, partly offsetting the reduction in international and exchange-related costs.
The ex-refinery/import price consequently fell from Rs280.54 to Rs278.27 per litre.
The Inland Freight Equalisation Margin (IFEM) remained unchanged at Rs7.91 per litre. The oil marketing company (OMC) margin and dealer margin also remained unchanged at Rs7.87 and Rs9.98 per litre, respectively.
As a result, the price before the petroleum levy, Climate Support Levy and sales tax declined from Rs306.30 to Rs304.03 per litre.
The petroleum levy remained at Rs80 per litre, while the Climate Support Levy stood at Rs5 per litre. Sales tax remained at zero.
The final petrol price therefore declined to Rs389.03 per litre from September 29. The official pricing document states that petrol is currently exempt from sales tax.
HSD price falls by Rs3.56 per litre
The reduction was more pronounced for HSD, whose price declined from Rs408.53 to Rs404.97 per litre.
The Rs3.56 per litre reduction represents a fall of approximately 0.87 per cent.
The main factor behind the decrease was the lower Dubai crude oil Platts Arab Gulf Mean average, which dropped from $115.34 to $113.31 per barrel.
The HSD crack remained unchanged at $41.89 per barrel, while the Aramco crude oil premium stayed at negative $1.50 per barrel. Freight and insurance also remained unchanged at $8 per barrel.
The resulting cost and freight component declined from $163.73 to $161.70 per barrel.
HSD pricing components
The exchange rate used for HSD pricing edged down from Rs277.36 to Rs277.34 per US dollar.
The cost and freight component in Pakistani rupees therefore fell from Rs285.64 to Rs282.09 per litre, while the cost of diesel at Karachi Port declined from Rs285.85 to Rs282.29 per litre.
The exchange-rate adjustment remained at zero, while customs duty was unchanged at Rs15.68 per litre.
The ex-refinery/import price consequently fell from Rs301.53 to Rs297.97 per litre.
The IFEM for HSD remained unchanged at Rs4.15 per litre, while the OMC and dealer margins continued at Rs7.87 and Rs9.98 per litre, respectively.
The price before levies and sales tax therefore declined from Rs323.53 to Rs319.97 per litre.
The petroleum levy remained at Rs80 per litre and the Climate Support Levy at Rs5, while sales tax remained at zero.
The final HSD price consequently fell to Rs404.97 per litre from September 29. The official document notes that diesel is currently exempt from sales tax.
HSD records larger reduction
Overall, HSD recorded the larger absolute reduction, falling by Rs3.56 per litre, compared with a Rs2.27 per litre decline in petrol.
The official pricing documents also state that the full impact of revisions in daily international prices is passed on over seven working days.
Fuel prices from September 29, 2026
| Fuel | Previous price | New price | Reduction |
| Petrol | Rs391.30/litre | Rs389.03/litre | Rs2.27 |
| HSD | Rs408.53/litre | Rs404.97/litre | Rs3.56 |