What happened
According to a report by Dawn, the government has adjusted domestic fuel pricing, raising petrol rates while reducing the cost of high-speed diesel (HSD). Petrol has increased by Rs2.02 per litre to a new retail price of Rs391.30 per litre. Meanwhile, HSD dropped by Rs3.59 per litre, fixing its updated rate at Rs408.53 per litre. Government taxes and duties remain set at Rs114 per litre for petrol and Rs100 per litre for diesel. A notification from the Petroleum Division states these rates apply from Saturday, September 26, through Monday, September 28.
Key facts
Dawn outlined several key facts regarding fuel history, government conservation policies, and pricing mechanisms:
- Fuel rates previously reached record highs on April 3, when petrol hit Rs458.41 per litre and HSD reached Rs520.35 per litre, following increases triggered by the outbreak of the US-Iran war on February 28.
- Following a July 17 announcement by Petroleum Minister Ali Pervaiz Malik, the Oil and Gas Regulatory Authority (Ogra) was tasked with setting prices on a daily basis to match global market volatility, replacing weekly revisions used since early March.
- To conserve energy during ongoing conflict in the Middle East, the government reintroduced austerity rules requiring commercial markets to shut by 9pm and cutting fuel allocations for official vehicles by 50 percent for three months.
- On September 13, Prime Minister Shehbaz Sharif introduced a relief program aimed at users of motorbikes, rickshaws, and vehicles under 800cc capacity. Additional scheme specifics are not specified in the source; please check the official notice.
Why it matters
As reported by Dawn, petrol price fluctuations heavily affect lower-middle and middle-income households, as the fuel is predominantly used for two-wheelers, auto-rickshaws, and small personal vehicles. Conversely, high-speed diesel prices carry a broad economic impact across the entire public because HSD is critical for operating heavy transport networks, power generation facilities, and commercial backup generators. Both products account for the vast majority of fuel revenues, recording combined monthly sales between 700,000 and 800,000 tonnes, compared to just 10,000 tonnes of monthly demand for kerosene.
Source: Dawn - Home · Published September 26, 2026