Petrol Price in Pakistan Raised by Rs0.88, Diesel by Rs0.53 Per Litre for October 21: Govt

 

 

ISLAMABAD: The federal government has increased the price of petrol by 88 paisas and high-speed diesel (HSD) by 53 paisas per litre for Wednesday, October 21, reversing part of the relief announced just a day earlier, Geo News reported.

Main News Report

• New prices: Under the Petroleum Division notification, petrol is fixed at Rs382.02 per litre (up from Rs381.14), while high-speed diesel will cost Rs389.80 per litre (up from Rs389.27), the Express Tribune reported.
• Daily pricing mechanism: The revision is the latest under the government's daily fuel price review system, introduced on July 17 to replace the weekly mechanism as Middle East tensions kept global oil markets volatile.
• How the daily rate is set: 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, Geo News reported.
• OGRA's role: According to an official document seen by Geo News, the Oil and Gas Regulatory Authority will issue daily ex-depot prices for petrol and diesel without requiring prior approval from the prime minister or the federal government; prices notified on Fridays remain unchanged over the weekend.
• Reversal of relief: The hike comes a day after the government slashed petrol by Rs5.16 and diesel by Rs7.69 per litre for October 20 — the latest in a run of sharp daily swings through the month.

Background Context

Pakistan's fuel prices have seesawed through October under the daily pricing regime. Petrol was priced around Rs393.86 per litre on October 15, fell to Rs390.23 on October 16 after a Rs3.63 reduction, dropped by Rs3.93 to Rs386.30 for October 17–19, and slid another Rs5.16 to Rs381.14 on October 20 — before today's increase pushed it back above Rs382.

The daily review mechanism was introduced after the conflict in the Middle East began on February 28, when Israel and the United States attacked Iran, leading Tehran to shut the Strait of Hormuz — the main route before the war for around a fifth of global energy supplies. Tensions have mounted again since the fragile June truce between Tehran and Washington collapsed, reviving fears of full-scale war and disrupting energy flows through the waterway.

Reactions and Statements

• Petroleum minister: Ali Pervaiz Malik defended the daily mechanism, saying it tracks the seven-day average of international market prices and follows international practice, Geo News reported.
• The pricing framework: The cabinet-approved document reported by Geo News states that OGRA will publish daily Platts reference prices and that the petroleum levy cannot exceed the limit approved by the federal cabinet; any change in the levy rate needs Finance Division approval.
• Relief for commuters still on the table: On September 13, Prime Minister Shehbaz Sharif announced a special relief scheme offering Rs100 per litre off petrol for motorcycles, three-wheeler rickshaws and cars with engines up to 800cc, covering an estimated 11.8 million beneficiaries, the Express Tribune reported.
• Austerity measures: On September 17, the government reintroduced austerity and fuel conservation measures amid rising prices, tightening business operating hours and restricting public events, the Express Tribune reported.

Why This News Matters

Fuel prices touch every household and business in Pakistan — from transport fares to food prices — so each daily revision reshapes the cost of living overnight. Today's increase, though small, eats into the Rs5.16 relief consumers got only a day earlier, underlining how volatile the new daily pricing system has become. For motorists and transporters, the swings between Rs393 and Rs381 within six days make budgeting fuel costs harder than under the old fortnightly system.

Future Developments

• Whether OGRA raises or lowers prices again on Thursday, October 22, as global oil markets digest Middle East tensions and US moves on Russian energy sanctions.
• Whether the government's Rs100-per-litre relief scheme for motorcycles, rickshaws and small cars moves from announcement to rollout.
• Whether sustained volatility forces another rethink of the daily pricing mechanism the cabinet approved in July.

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