Petrol price cut by 66 paisa, diesel rises 52 paisa per litre

The daily pricing method has resulted in more frequent revisions in petroleum rates. In the current revision of fuel prices, the federal government has decreased the petrol price by 66 paisa per liter but increased the rate of high-speed diesel (HSD) by 52 paisa.

Petrol would be available for Rs398.30 a liter after the amendment as compared to Rs398.96, while high-speed diesel will be sold at Rs396.24 a liter against Rs395.72.

The revised tariffs will be effective from October 10 to 12, 2026, according to Petroleum Division announcement. The revision comes amid instability in international oil markets and a move toward more frequent evaluations of domestic fuel pricing.

Price reviews daily

The government has initiated a daily review of petroleum pricing to respond more rapidly to the changes in international oil prices.

Under the new framework, OGRA will fix petrol and high-speed diesel prices on daily basis on the basis of the average rates in the international market during the prior seven days on an ex-depot basis.

Petroleum Minister Ali Pervaiz Malik said the daily estimates will be based on a seven-day average of international pricing, in line with international traditions.

OGRA has also started releasing daily petroleum prices on its website to provide transparency and allow for changes in foreign markets to be reflected in domestic rates faster.

The regulator can announce revised rates without having to have the previous consent of the prime minister or the federal government for each and every change. But the pricing announced Friday will not change over the weekend.

The switch to daily pricing comes as global oil markets swing with increasing tensions in the Middle East and worries over energy supplies.

After the outbreak of hostilities between Iran, Israel and the United States on 28 February, the government moved to weekly gasoline price reviews. In the past, petroleum products were amended on a fortnightly basis.

Tensions in the Strait of Hormuz have created uncertainty in energy markets. The key canal handled approximately a fifth of the world’s oil and other energy supplies before the conflict and any disruption is a huge issue for worldwide markets.

As per the new structure, OGRA will be bound to post Platts daily reference prices. The procedure also limits the scope for modifications in petroleum levies: the ceiling on levies is determined by the federal cabinet and the levy’s rate requires the permission of the Finance Division.