Petrol Price Cut by Rs2.71 Per Litre in Pakistan From October 22, Diesel Rises Re0.31: Daily Pricing

ISLAMABAD: The federal government has cut the price of petrol by Rs2.71 per litre and raised the price of high-speed diesel (HSD) by Re0.31 per litre, with the revised rates taking effect from October 22, in the first adjustment under the new daily fuel price review mechanism, Geo News reported on Wednesday night.

Main News Report

According to a notification issued by the Petroleum Division, petrol will now sell at Rs379.31 per litre, down from Rs382.02, while high-speed diesel will cost Rs390.11 per litre, up from Rs389.80. The announcement marks the first price change since the government switched from a weekly to a daily fuel price review system.

• Petrol: Rs379.31 per litre (down Rs2.71)
• High-speed diesel: Rs390.11 per litre (up Re0.31)
• Effective date: October 22, 2026
• Pricing method: Daily ex-depot prices issued by OGRA, based on the average international market prices of the previous seven days

Ogra has also begun publishing daily petroleum prices on its website to improve transparency and allow changes in international oil prices to be passed on to consumers more quickly, Geo News reported.

Background Context

The move to daily pricing follows a year of upheaval in fuel price management. Previously, petroleum rates in Pakistan were revised fortnightly. The government introduced a weekly fuel price review system after the conflict in the Middle East began on February 28, when Israel and the United States attacked Iran and Tehran shut the Strait of Hormuz — the main route before the war for around a fifth of global energy supplies.

Tensions have mounted since a fragile June truce between Tehran and Washington collapsed, reviving fears of full-scale war and disrupting energy flows through the Strait. Amid this volatility in global oil rates, the federal cabinet approved the daily pricing framework.

Just a day earlier, the government had raised petrol by Rs0.88 and diesel by Rs0.53 per litre for October 21, making Wednesday's petrol cut a sharp reversal in favour of consumers.

Reactions and Statements

Petroleum Minister Ali Pervaiz Malik said the daily prices are based on a seven-day average of international market prices, in line with international practice.

An official document seen by Geo News revealed key details of the cabinet-approved mechanism: OGRA will issue daily ex-depot prices for petrol and high-speed diesel without requiring prior approval from the prime minister or the federal government, while prices notified on Fridays will remain unchanged on Saturdays and Sundays. The document stated that OGRA will publish daily Platts reference prices from July 1, 2026, that the petroleum levy cannot exceed the limit approved by the federal cabinet, and that any change in the levy rate will require approval from the Finance Division.

The document also outlined revised fuel import arrangements for fiscal year 2026-27: imports of high-speed diesel will be routed exclusively through Pakistan State Oil (PSO), while oil marketing companies will be allowed to import petrol in line with their market shares. Companies failing to meet import obligations or upliftment requirements will not be granted fresh import permissions for up to nine months. Prices of kerosene oil and light diesel oil will also be determined on a daily basis.

The announcement comes as Jamaat-e-Islami has announced nationwide sit-ins against the petroleum levy from October 23, with its emir Hafiz Naeemur Rehman demanding the levy's complete abolition, Pakistan Today reported.

Why This News Matters

Fuel prices touch every Pakistani household — from motorbike commuters and public transport fares to the cost of moving goods across the country. A daily pricing system means international oil price movements, for better or worse, will reach consumers faster and more transparently than before. The cut brings welcome relief for petrol users a day after prices had risen, though the slight diesel increase will keep pressure on transport and freight costs.

Future Developments

Under the new framework, prices will be reviewed every day, with the next adjustment due on October 23 and Friday-notified rates locked in for the weekend. Consumers and businesses will need to track OGRA's daily notifications more closely than ever. The coming days will also test the political fallout, with Jamaat-e-Islami's sit-ins against the petroleum levy beginning on October 23 and pressure building on the government to ease fuel taxes further.

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