Petrol Price Cut by Rs1.93, Diesel by Rs4.21 Per Litre
The federal government has reduced the prices of petrol and high-speed diesel (HSD), providing a small relief to consumers amid continued volatility in global oil markets.
According to a Petroleum Division notification issued on Wednesday, petrol will now cost Rs390.12 per litre, down by Rs1.93, while the price of HSD has been reduced by Rs4.21 to Rs414.75 per litre.
The revised prices will take effect from Thursday, September 24, 2026.
New Petrol and Diesel Prices
The government continues to collect taxes and duties of Rs114 per litre on petrol and Rs100 per litre on diesel.
The latest reduction comes after fuel prices had risen sharply earlier this year because of developments in the international oil market and the conflict in the Middle East.
HSD had reached a high of Rs520.35 per litre on April 3, after rising from around Rs281 per litre following the outbreak of the US-Iran conflict on February 28.
Petrol also reached its highest level of Rs458.41 per litre on April 3, after starting to increase from around Rs266 per litre in early March.
Government Continues Fuel Conservation Measures
The government has also introduced several measures aimed at reducing fuel consumption as international oil prices remain uncertain.
Under the latest austerity measures, markets are required to close by 9pm, while fuel allocations for government vehicles have been reduced by 50 per cent for three months.
Prime Minister Shehbaz Sharif had earlier announced a relief programme for owners of motorcycles, rickshaws and vehicles with engines up to 800cc to help reduce the impact of higher fuel costs.
Daily Fuel Price Mechanism
The government shifted to a daily fuel pricing mechanism in July following increased fluctuations in international oil prices.
Petroleum Minister Ali Pervaiz Malik had said that the Oil and Gas Regulatory Authority (Ogra) would determine fuel prices on a daily basis according to movements in the international market.
Before the change, fuel prices were generally revised on a weekly basis.
The government had also introduced fuel conservation and targeted relief measures earlier in the year in response to concerns over possible disruptions to oil supplies.
Impact on Consumers and Transport
Petrol is widely used by private vehicles, motorcycles, rickshaws and other small transport vehicles, meaning price changes directly affect household transportation expenses.
Diesel prices are particularly important for the transport sector because HSD is widely used by heavy vehicles, power plants and large generators. Changes in diesel prices can therefore also influence transportation and operating costs across various sectors.
Petrol and HSD remain the country’s major petroleum products by volume, with combined monthly sales running into hundreds of thousands of tonnes, while demand for kerosene is considerably lower.
The latest price reduction is expected to remain in effect under the government’s current daily pricing system, subject to further changes in international oil prices.
