Pakistan’s petrol pricing formula includes an exchange rate adjustment of Rs1.33 per litre, taking the total petrol price to Rs398.96 per litre effective October 9, 2026.
ISLAMABAD: Pakistan State Oil (PSO) is charging Rs1.33 per litre of petrol as an exchange rate adjustment under the petroleum pricing formula effective October 9, 2026.
The adjustment reflects the difference between the dollar-rupee exchange rate on the date PSO settles its letter of credit (LC) and the State Bank of Pakistan’s exchange rate used during the relevant fuel pricing period.
According to the petrol price breakdown, the adjustment is included in the calculation of the landed cost of imported petrol before other charges, margins and government levies are added.
How the Exchange Rate Adjustment Is Calculated
The petrol pricing formula uses a seven-working-day rolling average of the daily Platts Arab Gulf mean price for 92 RON gasoline. For the latest pricing period, this component stands at $133.52 per barrel.
The weighted average freight and margin of PSO’s imported cargoes is $16.12 per barrel, taking the total cost at the originating or loading port to $149.64 per barrel.
The formula applies a seven-working-day rolling average exchange rate of Rs277.21 per US dollar. Based on 158.98 litres per barrel, the cost at the loading port comes to Rs260.91 per litre.
After adding Rs0.94 per litre in bank service charges, insurance, HDIP and port charges, and deducting Rs0.03 for the net change in product quantity during the voyage, the landed price in Pakistan reaches Rs261.82 per litre.
The Rs1.33 exchange rate adjustment is then added, along with Rs24.94 charged under the Customs Act, 1969, taking the import cost used as the refinery product price to Rs288.09 per litre.
How Petrol Reaches Rs398.96 per Litre
The pricing breakdown includes an Inland Freight Equalisation Margin (IFEM) of Rs8.02 per litre, an oil marketing company margin of Rs7.87 and a petrol dealer margin of Rs9.98.
These components raise the price to Rs313.96 per litre before government levies and taxes.
The federal government’s petroleum levy stands at Rs80 per litre, while the climate support levy is Rs5 per litre. Sales tax is currently listed at zero because petrol is exempt under the applicable sales tax treatment.
After these components are included, the final petrol price stands at Rs398.96 per litre, effective from October 9, 2026.
The exchange rate adjustment is one component of the overall pricing formula, which also accounts for international fuel prices, freight, import-related expenses, inland transportation, marketing margins and government levies.