The government raises petrol to Rs393.86 per litre while cutting high-speed diesel to Rs396.65, amid volatile global oil markets and regional tensions.
ISLAMABAD: The federal government on Wednesday increased the price of petrol by Rs1.20 per litre while reducing the price of high-speed diesel (HSD) by 17 paisas per litre for October 15, 2026.
According to a notification issued by the Petroleum Division, the price of petrol has been fixed at Rs393.86 per litre, while HSD will be available at Rs396.65 per litre on Thursday.
The latest revision comes a day after the government reduced petrol and HSD prices by Rs2.71 and three paisas per litre, respectively, for October 14.
On July 17, the government introduced a new pricing mechanism under which petroleum product prices would be reviewed and notified daily, replacing the previous weekly system. The move came amid renewed tensions between the United States and Iran, which have intensified volatility in international oil markets and raised concerns about fuel supplies.
Government announces fuel relief scheme
On September 13, Prime Minister Shehbaz Sharif announced a special relief scheme offering a subsidy of Rs100 per litre on petrol for motorcycles, three-wheeled rickshaws and cars with engine capacities of up to 800cc.
The initiative aims to protect lower-income consumers from the impact of rising petroleum prices.
Under the proposal, an estimated 11.8 million beneficiaries would receive relief. Around 10 million two-wheeler users and 800,000 three-wheeler users would qualify for a subsidy on 20 litres of fuel 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 receive relief on 30 litres per month, translating into a maximum monthly benefit of Rs3,000 each.
Government tightens fuel conservation measures
On September 17, the government reintroduced austerity and fuel conservation measures in response to rising petroleum prices, tightening business operating hours and restricting public events.
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 notification issued by the Cabinet Division.
Marriage halls, marquees and other commercial venues hosting festive events were required to close by 10pm, while restaurants, cafes, eateries, food outlets and standalone fruit and vegetable shops were allowed to operate until 11pm.
Takeaway and home delivery services remained exempt from the timing restrictions.
Global oil prices rise amid Middle East tensions
International oil markets continue to face significant geopolitical risks, with crude prices influenced by OPEC+ production decisions, conflicts in the Middle East, sanctions on oil-producing countries and disruptions to critical shipping routes, including the Strait of Hormuz and the Red Sea.
Any interruption to these supply chains can push up crude oil prices and freight costs. As Pakistan imports most of its petroleum requirements, changes in international markets can quickly affect domestic fuel prices.
Oil prices steadied on Wednesday after rising following an attack on the headquarters of Saudi Arabia’s state-owned oil company and Iranian comments about new tactics targeting ships and keeping oil prices elevated to influence the US midterm elections.
Brent crude futures rose 13 cents to $105.56 per barrel by 1325 GMT. US West Texas Intermediate (WTI) crude gained $1.25, or 1.33%, to $95.39 per barrel, reaching its highest level in more than two weeks.
“Attacks on ships crossing the Strait of Hormuz and military strikes between Saudi Arabia and the Houthis are supporting prices as market participants remain concerned about lower oil exports from the region,” UBS analyst Giovanni Staunovo said, adding that exports had held up so far.
With international oil prices remaining elevated and geopolitical tensions continuing to threaten regional supplies, Pakistan’s domestic petroleum prices remain exposed to further volatility under the daily pricing mechanism.