What happened

According to a report by Dawn, the government announced a reduction in the price of petrol by Rs2.71 per litre, alongside an increase in the rate of high-speed diesel (HSD) by Re0.31 per litre. A Petroleum Division notification confirmed that the updated rates are applicable for Thursday, Oct 22. Under the new pricing structure, petrol retails at Rs379.31 per litre and HSD costs Rs390.11 per litre. The government maintains taxes and duties of Rs114 per litre on petrol and Rs100 per litre on diesel.

Key facts

Dawn outlined several key developments surrounding fuel pricing and policy:

  • Price history: Prices escalated following the start of the US-Iran conflict on February 28. Petrol climbed from Rs266 per litre in early March to a peak of Rs458.41 on April 3. HSD rose from Rs281 per litre to a peak of Rs520.35 on the same date.
  • Daily pricing mechanism: On July 17, Petroleum Minister Ali Pervaiz Malik announced that the Oil and Gas Regulatory Authority (Ogra) was instructed by the prime minister and cabinet to adjust fuel prices on a daily basis to match international market trends, replacing the weekly adjustments used since early March.
  • Government measures: In response to fuel price surges and Middle East instability, the government enforced austerity steps, requiring markets to close by 9pm and cutting official vehicle fuel allocations by 50 per cent for three months. Additionally, Prime Minister Shehbaz Sharif announced a relief scheme on September 13 targeting owners of motorcycles, auto-rickshaws, and vehicles up to 800cc.

Why it matters

As noted by Dawn, fluctuations in petroleum costs impact distinct segments of society and the economy. Petrol is mostly consumed by two-wheelers, rickshaws, and small personal vehicles, directly affecting lower-middle and middle-class consumers. HSD is critical for power plants, large generators, and heavy transport, influencing broader public costs. Furthermore, petrol and HSD serve as the primary revenue generators among petroleum products, recording combined monthly sales between 700,000 and 800,000 tonnes, compared to a monthly kerosene demand of 10,000 tonnes.

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Source: Dawn - Home · Published October 21, 2026 · Photo by Cecelia Chang on Unsplash