Petrol will now cost Rs387.40 per litre, while high-speed diesel is reduced by Rs1.89 to Rs400.35 under the revised daily pricing mechanism.
ISLAMABAD: The federal government on Tuesday reduced the price of petrol by 14 paisas per litre and high-speed diesel (HSD) by Rs1.89 per litre, citing changes in international oil prices.
Following the reduction, petrol will be available at Rs387.40 per litre, while the price of high-speed diesel has been fixed at Rs400.35 per litre.
According to a Petroleum Division notification, the revised fuel prices will take effect from October 1, 2026.
The revised rates are as follows:
| Product | Previous price | New price | Change |
| Petrol | Rs387.54 | Rs387.40 | -Rs0.14 |
| High-speed diesel | Rs402.24 | Rs400.35 | -Rs1.89 |
The Oil and Gas Regulatory Authority (Ogra) has also begun publishing daily petroleum prices on its website to improve transparency and enable changes in international oil prices to be passed on to consumers more quickly.
Petroleum Minister Ali Pervaiz Malik said the daily prices are based on a seven-day average of international market prices, in line with international practice.
The government decided to switch to a daily fuel price review mechanism amid volatility in global oil prices following renewed hostilities in the Middle East.
The government had previously introduced a weekly fuel price review system after the conflict in the Middle East began on February 28, when Israel and the United States attacked Iran, prompting Tehran to shut the Strait of Hormuz, a key route for global energy supplies.
Tensions have increased since a fragile June truce between Tehran and Washington collapsed, raising concerns over a wider conflict and disruptions to energy flows through the Strait.
Previously, petroleum prices were revised on a fortnightly basis.
Daily fuel pricing framework
An official document revealed key details of the federal cabinet-approved petroleum pricing mechanism, under which Ogra will issue daily ex-depot prices for petrol and high-speed diesel.
Under the framework, fuel prices will be determined using the average international market prices recorded over the previous seven days.
Ogra will be authorised to announce daily prices without requiring prior approval from the prime minister or the federal government. However, prices notified on Fridays will remain unchanged on Saturdays and Sundays.
The document stated that Ogra will publish daily Platts reference prices from July 1, 2026.
It also stipulated that the petroleum levy cannot exceed the limit approved by the federal cabinet, while any change in the levy rate will require approval from the Finance Division.