What happened

According to Dawn, the government has increased fuel prices effective Wednesday, Oct 21. The price of petrol was raised by Re0.88 per litre, while high-speed diesel (HSD) went up by Re0.53 per litre following an official notification from the Petroleum Division.

Under the revised rates, petrol retails at Rs382.02 per litre, and HSD costs Rs389.80 per litre. The government continues to charge Rs114 per litre in taxes and duties on petrol, alongside Rs100 per litre on diesel.

Key facts

  • Fuel prices previously reached peak levels on April 3, when petrol reached Rs458.41 per litre and HSD hit Rs520.35 per litre amid international market volatility following the outbreak of the US-Iran war on February 28.
  • Petroleum Minister Ali Pervaiz Malik announced on July 17 that the Oil and Gas Regulatory Authority (Ogra) was instructed to determine fuel prices on a daily basis due to global fluctuations, replacing weekly revisions.
  • To manage energy consumption amid Middle East tensions, the government reintroduced austerity measures requiring commercial markets to close by 9pm and reducing official vehicle fuel quotas by 50 per cent for three months.
  • Prime Minister Shehbaz Sharif previously announced a relief scheme on September 13 targeting owners of motorcycles, autorickshaws, and vehicles under 800cc to reduce the financial impact of global oil price increases.

Why it matters

According to Dawn, changes in fuel prices have a widespread economic impact across different social groups. Adjustments to petrol prices primarily affect middle and lower-middle-class consumers who rely on two-wheelers, rickshaws, and small personal vehicles. Meanwhile, diesel price changes affect the broader public because the fuel is widely used in heavy freight transport, large generators, and power generation plants.

Furthermore, petrol and HSD represent critical revenue drivers for the government, generating monthly sales of approximately 700,000 to 800,000 tonnes, compared to a monthly demand of 10,000 tonnes for kerosene.

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Source: Dawn - Home · Published October 20, 2026 · Photo by jason song on Unsplash