Pakistan Cuts Petrol Price While Raising High-Speed Diesel Rates

The federal government adjusted fuel prices on Friday, reducing petrol by Re0.66 per litre while raising high-speed diesel by Re0.52 per litre. Petrol now retails at Rs398.30 per litre and high-speed diesel costs Rs396.24 per litre. The revision applies from October 10 through October 12, under a daily price review mechanism implemented to manage volatility in global oil markets.

Ogra Publishes Daily Petroleum Prices Based on Global Averages

The Oil and Gas Regulatory Authority (Ogra) now publishes daily ex-depot prices for petrol and high-speed diesel on its website. Petroleum Minister Ali Pervaiz Malik stated that these daily figures rely on a seven-day average of international market prices, aligning local adjustments with global practices. Under this framework, Ogra determines rates without requiring prior approval from the prime minister or the federal government, though prices notified on Fridays remain unchanged through the weekend.

An official document reviewed by Geo News outlined that Ogra will publish daily Platts reference prices starting July 1, 2026. The framework specifies that the petroleum levy cannot exceed limits approved by the federal cabinet, and any adjustment to the levy requires clearance from the Finance Division. Prices for kerosene oil and light diesel oil are now determined daily.

Middle East Conflict Drove Diesel and Petrol Prices Higher

High-speed diesel previously reached a peak of Rs520.35 per litre on April 3, climbing from Rs281 per litre after the US-Iran war began on February 28. Petrol peaked at Rs458.41 per litre on the same date after starting from Rs266 in March. The conflict escalated when Israel and the United States attacked Iran, prompting Tehran to close the Strait of Hormuz, which previously carried roughly one-fifth of global energy supplies.

Tax Burdens and Consumer Impact Across Sectors

The government maintains substantial duties on fuel, levying Rs114 per litre on petrol and Rs100 per litre on diesel. Petrol serves primarily private transport, small vehicles, rickshaws, and two-wheelers, directly influencing middle and lower-middle class budgets. Diesel impacts the broader public through heavy transport, power plants, and large generators. Together, petrol and high-speed diesel represent the primary revenue earners with monthly sales between 700,000 and 800,000 tonnes.

Austerity Measures and Revised Fuel Import Rules

Import arrangements for fiscal year 2026-27 mandate that high-speed diesel imports route exclusively through Pakistan State Oil. Oil marketing companies may import petrol proportional to their market shares, but firms failing to meet import or upliftment obligations face bans on fresh import permissions for up to nine months.