Pakistan Fuel Price Update: Petrol Dropped by Rs1.70, High-Speed Diesel Hiked by Rs1.39

The federal government announced a mixed update for commuters and industries across Pakistan. The price of petrol has been reduced by Rs1.70 per litre, offering slight relief to motorcycle and small vehicle owners. However, High-Speed Diesel (HSD) saw a price hike of Rs1.39 per litre.

According to the notification issued by the Petroleum Division, the new rates take effect starting Wednesday, August 12, 2026.

Latest Fuel Prices in Pakistan

• Petrol: Rs325.92 per litre (Decreased by Rs1.70)

• High-Speed Diesel (HSD): Rs382.25 per litre (Increased by Rs1.39)

Despite these marginal adjustments, tax levies remain substantial. The government continues to charge Rs114 per litre in taxes and duties on petrol, alongside Rs100 per litre on HSD.

Historical Context & Market Volatility

Both fuel products have seen massive fluctuations over recent months, driven by global crude market instability triggered by geopolitical tensions in the Middle East.

• High-Speed Diesel: HSD previously reached a record peak of Rs520.35 on April 3, up from Rs281 in late February.

• Petrol: Petrol hit an all-time high of Rs458.41 on April 3, after starting its rapid upward climb from Rs266 in early March.

OGRA to Shift to Daily Fuel Price Adjustments

In a major policy shift, Petroleum Minister Ali Pervaiz Malik revealed that the federal cabinet and the Prime Minister have directed the Oil and Gas Regulatory Authority (OGRA) to determine petroleum prices on a daily basis. This decision comes as international market rates continue to fluctuate rapidly.

While the government aims to reflect global market changes directly, the move has met strong pushback. The All Pakistan Dealers Association has formally rejected daily price revisions and is reportedly deliberating on protest actions.

Public & Economic Impact

Fuel price revisions directly ripple through the domestic economy:

• Petrol: Primarily powers private cars, two-wheelers, and auto-rickshaws, meaning price changes heavily affect middle- and lower-middle-class households.

• Diesel: Powers heavy freight transport, agricultural equipment, power plants, and large generators, meaning any increase in HSD rates pushes up inflation, goods transport fees, and essential supply costs.

Together, petrol and diesel represent the vast majority of national fuel consumption, accounting for 700,000 to 800,000 tonnes in monthly sales compared to just 10,000 tonnes of kerosene.

For the latest updates on fuel rates, economic policies, and national news, stay tuned to Aagahi Hub.