Petrol rises to Rs393.64 per litre while HSD falls to Rs397.76 as Pakistan begins daily fuel price adjustments based on global rates.
ISLAMABAD: The federal government has increased the price of petrol by 88 paisas per litre while reducing the rate of high-speed diesel (HSD) by Rs1.88 per litre under the newly introduced daily petroleum pricing mechanism.
According to a Petroleum Division notification, the price of petrol has risen from Rs392.76 to Rs393.64 per litre, while HSD has fallen from Rs399.64 to Rs397.76 per litre. The revised rates will remain effective until October 6.
The latest adjustment follows movements in international oil prices and is based on a seven-day average of global petroleum prices.
Petroleum Minister Ali Pervaiz Malik said the daily pricing mechanism had been introduced to ensure that changes in international oil prices are reflected more quickly in domestic fuel prices.
The Oil and Gas Regulatory Authority (OGRA) has also started publishing daily petroleum prices on its website as part of efforts to improve transparency and provide consumers with timely information.
OGRA gets authority to set daily prices
Under the new framework, OGRA will determine and announce daily ex-depot prices for petrol and HSD without requiring prior approval from the prime minister or the federal government.
However, prices announced on Fridays will remain unchanged on Saturdays and Sundays.
The shift to daily pricing comes amid heightened volatility in global oil markets following renewed tensions in the Middle East.
The government had earlier moved from a fortnightly to a weekly fuel price review mechanism after the conflict that began on February 28 disrupted regional energy flows and raised concerns over supplies through the Strait of Hormuz.
The Strait is a major global energy route, with around one-fifth of global energy supplies passing through it before the conflict.
Seven-day average to determine fuel rates
According to an official document, OGRA is required to publish daily Platts reference prices from July 1, 2026.
The regulator will use international market prices from the previous seven days to calculate domestic fuel rates under the new mechanism.
The framework also places a limit on the petroleum levy based on the amount approved by the federal cabinet.
Any change in the petroleum levy rate will require approval from the Finance Division.
The new mechanism is aimed at creating a more responsive fuel pricing system by linking domestic petrol and diesel rates more closely with movements in international oil markets.
For consumers, the system could mean more frequent changes in pump prices as global crude and refined petroleum prices fluctuate.