ISLAMABAD – The federal government revised petroleum prices for September 18, cutting petrol by Rs0.43 per litre to Rs390.79, while increasing the price of high-speed diesel (HSD) by Rs3.47 to Rs424.92 per litre, offering motorists only marginal relief as diesel costs continue to climb.
| POLs | Old Price | Change | New Price |
|---|---|---|---|
| Petrol | Rs391.22 | ↓ Rs0.43 | Rs390.79 |
| Diesel | Rs421.45 | ↑ Rs3.47 | Rs424.92 |
The latest round of petroleum-price movements comes against a backdrop of sharp swings in global crude markets, geopolitical tensions and a new daily pricing mechanism that is transmitting international market movements to Pakistan’s fuel stations much faster than under the previous review system.
Petroleum prices are now being adjusted under the government’s revised pricing mechanism, with international Platts rates, premiums and other associated costs feeding into domestic calculations. The ministry has been publishing petroleum-price notifications on a daily basis since the new regime was introduced.
The price shock has been particularly visible in petrol. After starting 2026 at roughly Rs266 per litre, petrol prices surged as international markets reacted to the escalation of tensions in the Middle East. The price eventually hit a yearly peak of Rs458.41 per litre on April 3.
The market then reversed sharply. Petrol fell to around Rs315.80 per litre by July 21, giving consumers a substantial respite from the spring surge.
From the July low, petrol prices began climbing again. Across 41 notifications issued through mid-September, the average price was around Rs342.52 per litre. Compared with the July trough, the increase to the latest level represents a rise of approximately Rs75.42, or about 24%.
The speed of the September increase has been particularly striking.
Petrol stood at roughly Rs343–346 per litre at the start of the month, before climbing to Rs375.82 on September 12, Rs380.24 on September 15, and Rs384.34 on September 16. On September 17, the government raised petrol by Rs6.88 per litre, taking the notified price to Rs391.22, while HSD rose by Rs5.62 to Rs421.45. The Petroleum Division’s official website lists the September 17 petroleum-price notification among its latest releases.
Diesel has followed its own steep trajectory. HSD, which was around Rs281 per litre earlier in the year, climbed dramatically during the international oil-price shock and reached a record Rs520.35 per litre on April 3, according to contemporary reporting.
Although diesel subsequently declined, the recent rebound has pushed it back above the Rs420 mark. The September 17 rate of Rs421.45 per litre represents another significant burden for the transport, agriculture and logistics sectors.
The pressure is particularly important because diesel is widely used in commercial transportation and other productive activities, meaning changes in its price can feed into freight and operating costs.
The domestic price moves are unfolding as international oil markets remain highly unsettled. Lately, Crude prices remained above $100 a barrel as markets continued to assess the possibility of a wider Middle East conflict and its implications for global energy supplies.
The government began transitioning from weekly to daily petroleum pricing in July. Under the new framework, prices are determined through a formula-based process designed to reflect market conditions more rapidly. The Petroleum Division said the reform was intended to improve transparency and move the sector toward a more market-driven system.
With fuel prices climbing, the government has also announced targeted relief measures for smaller vehicle owners. The measures include support for motorcycles, auto-rickshaws and cars with engine capacities of up to 800cc, while the government has also introduced austerity steps aimed at conserving fuel.
On Thursday, Pakistan announced measures including cuts in fuel allowances for official vehicles, restrictions on new government vehicle purchases, limits on foreign travel by officials and a halt to official dinners as part of efforts to conserve energy amid the Gulf conflict.
Petrol Price in Pakistan hits Rs391.22, Diesel at 421 amid back to back hikes
