The federal government has reduced petrol price by Rs3.93 per litre while keeping high-speed diesel (HSD) rates unchanged. Following the revision, petrol will cost Rs386.30 per litre, while diesel will remain at Rs396.96. According to the Petroleum Division’s notification, the revised rates will apply from October 17 to October 19.
Read More: Petrol rate cut by Rs 3.63, diesel’s up by Rs 0.31
The government continues to collect Rs114 per litre in taxes and duties on petrol and Rs100 per litre on diesel. Both fuels have experienced significant price fluctuations since the US-Iran conflict began on February 28. Petrol reached a peak of Rs458.41 per litre on April 3, while diesel climbed to Rs520.35 on the same date.
The government has also reintroduced austerity measures amid rising fuel costs and concerns about the Middle East conflict. Under these measures, markets must close by 9pm, while official vehicle fuel allocations have reduced by 50% for three months. Prime Minister Shehbaz Sharif also announced a relief scheme on September 13 for motorcycle users, rickshaws and owners of vehicles with engines up to 800cc.
Meanwhile, the government changed its fuel pricing mechanism in July following renewed hostilities between Iran and the United States. Petroleum Minister Ali Pervaiz Malik said the Oil and Gas Regulatory Authority (OGRA) would determine prices daily according to international market trends. Before that change, authorities had announced weekly price revisions since early March. The government has also introduced targeted fuel subsidies to address rising costs.
Read More: Govt hikes petrol price by Rs 1.20, cuts diesel by Rs 0.17
Petrol and diesel prices affect households, businesses and transport operators across Pakistan. Petrol is widely used by private cars, motorcycles and rickshaws, making price changes particularly significant for middle- and lower-middle-income households. Diesel powers heavy transport, power plants and large generators, so its price influences transportation and operating costs. Monthly sales of petrol and high-speed diesel reach approximately 700,000 to 800,000 tonnes each, making them major sources of fuel-related revenue.