Petrol Price Increased by Rs4.61, Diesel Lowered Under New Daily Review

On Monday, the government announced an increase in the price of petrol by Rs4.61 per litre and a decrease in the price of high-speed diesel (HSD) by Rs1.96 per litre, attributing the changes to ongoing fluctuations in international oil prices.

With these adjustments, consumers will pay Rs393.75 per litre for petrol and Rs422.8 per litre for HSD. The revised prices are effective only on September 22, according to a notification issued by the Petroleum Division.

The Oil and Gas Regulatory Authority (Ogra) has initiated the publication of daily petroleum prices on its website. This move aims to increase transparency and adapt more rapidly to shifts in global oil prices. Petroleum Minister Ali Pervaiz Malik stated that the daily prices are determined based on a seven-day average of international market rates, following international standards.

The government adopted a daily price review mechanism in response to instability in global oil markets, particularly after renewed conflict in the Middle East. Previously, the system involved fortnightly revisions, then switched to weekly pricing after the start of hostilities in late February.

An official document cited by Geo News outlined the new federal cabinet-approved mechanism, giving Ogra the authority to set and announce ex-depot prices for petrol and HSD each day based on international averages. Under this framework, prices released on Fridays will remain fixed through the weekend.

The document also specifies that the petroleum levy cannot exceed limits set by the cabinet, and any changes to levy rates must be approved by the Finance Division. Additionally, it details arrangements for fuel imports in the 2026-27 fiscal year, assigning all HSD imports to Pakistan State Oil and allowing oil marketing companies to import petrol according to their market shares.

The prices of kerosene oil and light diesel oil will now also be set daily. Relevant authorities have been instructed to implement the new pricing system immediately.