Petrol price reaches Rs349 and diesel Rs374.31 per litre in Pakistan
Petrol and diesel prices revised
The new rates will take effect from September 4. Under the new rates, petrol will now cost Rs349 per litre across the country. The price of high-speed diesel has been raised to Rs374.31 per litre.
The government said the latest increase comes as international oil prices remain unstable. Global energy markets have been affected by renewed tensions and uncertainty in the Middle East.
Daily fuel price system introduced
The government has moved towards a daily fuel price review instead of the previous fortnightly system. The new approach is intended to allow changes in international oil prices to reach local consumers more quickly.
The Oil and Gas Regulatory Authority has also started publishing daily petroleum prices on its website. The move is aimed at improving transparency and showing consumers how international price changes affect local fuel rates.
Petroleum Minister Ali Pervaiz Malik said the daily prices are calculated using the average of international market prices over the previous seven days. He said the method is in line with practices followed in international markets.
Middle East tensions affect oil markets
The change comes amid renewed volatility in global oil prices following continuing tensions in the Middle East. Concerns over energy supplies have increased as uncertainty surrounding the region continues to affect international markets.
The government had earlier introduced a weekly fuel price review after the conflict in the Middle East began on February 28. The conflict followed Israeli and US attacks on Iran, after which Tehran closed the Strait of Hormuz, a major route that previously carried around a fifth of global energy supplies.
Tensions increased further after a fragile June truce between Tehran and Washington collapsed. The situation has raised concerns about a wider conflict and possible disruptions to energy flows through the Strait.
How the new pricing system will work
An official document seen by Geo News provides details of the federal cabinet-approved pricing system. Under the framework, Ogra will announce daily ex-depot prices for petrol and high-speed diesel.
The prices will be based on the average international market rates recorded during the previous seven days. Ogra will have the authority to announce the daily rates without seeking prior approval from the prime minister or the federal government.
However, prices announced on Fridays will remain unchanged during Saturday and Sunday. The document also stated that Ogra will publish daily Platts reference prices from July 1, 2026.
The framework places a limit on the petroleum levy based on the amount approved by the federal cabinet. Any change in the levy rate will require approval from the Finance Division.
The latest increase means motorists will have to pay more for both petrol and diesel. The daily pricing system could also make local fuel rates respond more quickly to changes in international oil prices.
For consumers, this may mean fuel prices can change more often than before. The impact will largely depend on international oil prices, Middle East tensions and the government’s decisions on petroleum taxes and levies.
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