Pakistan Raises Petrol, Diesel Prices Again

News Desk

Islamabad: Pakistan’s fuel market is entering a new phase as petrol and high-speed diesel (HSD) prices rise from September 3 under a pricing system that gives the Oil and Gas Regulatory Authority (Ogra) greater control over daily fuel-rate adjustments.

Petrol will now sell at Rs346.16 per litre after an increase of Rs2.29, while HSD has climbed by Rs1.11 to Rs372.03 per litre.

The latest increase comes as international oil markets face renewed uncertainty amid escalating tensions in the Middle East. Fears of interruptions to oil shipments through the Strait of Hormuz have added to concerns over the global energy supply.

Unlike the previous system of fortnightly or weekly revisions, the new framework allows fuel prices to be reviewed and notified on a daily basis. This means domestic rates can now respond more quickly to changes in international crude prices.

Ogra will determine the daily ex-depot prices of petrol and HSD using the average international market rates recorded over the previous seven days. The regulator can issue the revised rates without obtaining advance approval from the prime minister or the federal government.

There is, however, a weekend provision under which prices announced on Friday will remain unchanged on Saturday and Sunday.

Petroleum Minister Ali Pervaiz Malik said the seven-day average formula follows international practices and is intended to provide a more responsive mechanism for adjusting domestic fuel prices.

In another move aimed at improving transparency, Ogra has started publishing petroleum prices on its website every day. The government expects the system to make international price movements more visible and allow changes in global markets to reach the domestic market faster.

The framework also places restrictions on the petroleum levy. The levy must remain within the limit approved by the federal cabinet, while any change in its rate will require approval from the Finance Division.

The government has also overhauled fuel-import arrangements for the 2026-27 fiscal year. PSO will have exclusive responsibility for importing HSD, while oil marketing companies will be permitted to import petrol according to their respective market shares.

Companies that fail to meet their import commitments or required fuel-upliftment levels could face a ban on obtaining new import permissions for up to nine months.

Kerosene and light diesel oil will also come under the daily pricing framework, with authorities directed to implement the system immediately.

For motorists and businesses, the biggest change may be the frequency of price movements. Instead of waiting for periodic revisions, consumers could see fuel rates change more often as international oil prices fluctuate, making global market developments an increasingly direct factor in Pakistan’s fuel costs. Input from Geo news website.