The federal government on Wednesday slashed the price of high-speed diesel (HSD) by Rs32.63 per litre and increased petrol by Rs2.97 per litre for the next 24 hours, following successful negotiations with oil refineries. Under the revised rates, petrol will be available at Rs337.51 per litre, while HSD will be priced at Rs363.06 per litre. The new prices will remain effective for August 20, per the notification.
The levy on diesel has been increased by Rs1.72 to Rs80 per litre, while the levy on petrol remains unchanged at Rs80 per litre, according to Ogra sources. The levy on kerosene oil also remains unchanged at Rs20.36 per litre, the sources said. Under the revised framework, approved by the federal cabinet, the regulator will publish updated fuel prices on its website every day, aiming to enhance transparency and enable consumers to benefit more quickly from changes in international oil markets.
The new pricing mechanism would be based on a rolling seven-day average of international petroleum prices, aligning Pakistan's fuel pricing system with global practices, Petroleum Minister Ali Pervaiz Malik announced in a news conference last Friday. Amid heightened volatility in global oil markets following renewed hostilities in the Middle East, the government decided to adopt a daily fuel price review mechanism. The weekly review system had been introduced after the outbreak of the Israel-Iran conflict in February, which was further intensified by US involvement and disruptions to energy shipments through the Strait of Hormuz, a key route for global oil supplies.
Prior to the weekly mechanism, petroleum prices were revised on a fortnightly basis. An official document seen by Under the new framework, fuel prices will be determined using the average international market prices recorded over the previous seven days. The regulator will be authorised to announce daily prices 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. It also stipulated that the petroleum levy cannot exceed the limit approved by the federal cabinet, while any change in the levy rate will require approval from the Finance Division. Import conditions revised The document further 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. The document also stated that the prices of kerosene oil and light diesel oil would be determined on a daily basis and directed the relevant authorities to ensure the immediate implementation of the new pricing mechanism.