What happened
According to Dawn, the government has reduced domestic fuel prices, cutting petrol by Rs5.16 per litre and high-speed diesel (HSD) by Rs7.69 per litre. A notification from the Petroleum Division confirmed that the updated rates take effect on October 20. Following the adjustment, petrol is priced at Rs381.14 per litre, while HSD costs Rs389.27 per litre.
Key facts
- The government maintains taxes and duties of Rs114 per litre on petrol and Rs100 per litre on diesel.
- Fuel rates previously reached peak levels on April 3, with HSD rising to Rs520.35 per litre and petrol reaching Rs458.41 per litre after hostilities broke out between the US and Iran.
- Petroleum Minister Ali Pervaiz Malik announced on July 17 that the Oil and Gas Regulatory Authority (Ogra) would adjust fuel prices on a daily basis, shifting away from weekly revisions introduced in early March.
- To address rising fuel costs during ongoing Middle East hostilities, the government restored austerity policies, cutting official vehicle fuel allocations by 50 per cent for three months and requiring markets to shut by 9pm.
- Prime Minister Shehbaz Sharif announced a relief initiative on September 13 for auto-rickshaws, motorcycles, and cars up to 800cc, building on targeted fuel subsidies previously introduced in April.
Why it matters
Dawn noted that fuel price revisions directly affect different segments of the economy. Petrol costs directly influence middle and lower-middle-class households who depend on two-wheelers, rickshaws, and small cars. Diesel adjustments impact the general population because the fuel powers heavy commercial transport, power generation units, and large generators. Additionally, petrol and HSD are major revenue drivers for the state, with combined monthly sales reaching 700,000 to 800,000 tonnes, compared to a monthly kerosene demand of about 10,000 tonnes.
Source: Dawn - Home · Published October 19, 2026 · Photo by Christ Divin Mpiaya on Unsplash