ISLAMABAD: The federal government on Monday slashed the price of petrol by Rs5.16 and high-speed diesel by Rs7.69 per litre, effective from October 20, amid volatility in the international oil market.
According to a notification issued by the Petroleum Division, petrol will now sell at Rs381.14 per litre, down from Rs386.30, while high-speed diesel will cost Rs389.27 per litre, down from Rs396.96. The Oil and Gas Regulatory Authority has also begun publishing daily petroleum prices on its website to improve transparency.
Petroleum Minister Ali Pervaiz Malik said the daily prices are worked out from a seven-day average of international market rates, in line with international practice.
The cut comes under a new cabinet-approved fuel pricing framework seen by Geo News, under which OGRA will issue daily ex-depot prices for petrol and high-speed diesel. The regulator is authorised to announce prices each day without seeking the prime minister’s or the federal government’s prior approval, while prices notified on Fridays will remain unchanged over Saturdays and Sundays.
The framework also caps the petroleum levy at the limit approved by the federal cabinet, with any change in the levy rate requiring the Finance Division’s approval. OGRA will publish daily Platts reference prices from July 1, 2026.
For fiscal year 2026-27, the document revises fuel import arrangements: high-speed diesel imports will be routed exclusively through Pakistan State Oil, while oil marketing companies may import petrol in line with their market shares. Companies failing to meet their import or upliftment obligations will be denied fresh import permissions for up to nine months.
The prices of kerosene oil and light diesel oil will also be determined on a daily basis under the new mechanism. The government had moved to a weekly fuel price review system after conflict in the Middle East began on February 28, when Israel and the United States attacked Iran and Tehran shut the Strait of Hormuz, through which around a fifth of global energy supplies flowed. Prices were previously revised fortnightly. Earlier fuel price changes are covered here.
