Key Takeaways
- Petrol prices reduced by Rs 1.65 per litre.
- Diesel prices decreased by Rs 0.88 per litre.
- Falling global refined product costs drove the price reduction.
The Petroleum Division of Pakistan has announced a reduction in the prices of petrol and diesel for the period from September 19 to 21. The ex-depot price of petrol has been lowered from Rs 390.79 to Rs 389.14 per litre, a decrease of Rs 1.65 per litre. Similarly, the price of High Speed Diesel (HSD) has dropped by Rs 0.88 per litre to Rs 424.04 per litre.
The reduction in prices is attributed to a decline in global refined product costs, particularly a drop in premium and freight charges. According to the official notification, the average petrol price shifted to USD 132.57 per barrel, while HSD decreased to USD 124.24 per barrel.
Pakistan imports more than 80 percent of its total consumption through the import of refined petroleum products. The import cost of petrol has been reduced to Rs 278.58 per litre, while the cost of HSD has decreased to Rs 317.13 per litre.
Government levies and fixed profit margins for both fuels remain unchanged. Petrol and HSD carry a Petroleum Levy of Rs 80 per litre and a Climate Support Levy of Rs 5 per litre. Dealers and oil marketing companies have profit margins of Rs 9.98 per litre and Rs 7.87 per litre, respectively. Customs duties are fixed at Rs 19.59 per litre for petrol and Rs 15.68 per litre for HSD.
The Inland Freight Equalization Margin (IFEM) has been adjusted to Rs 7.71 per litre for petrol and Rs 4.06 per litre for HSD. These adjustments reflect the ongoing efforts to stabilize the fuel market and reduce the financial burden on consumers.
Prime Minister Shehbaz Sharif has directed authorities to further expand the Prime Minister’s Fuel Relief Scheme. This scheme now includes older motorcycles, rickshaws, and Chingchi rickshaws, allowing them to benefit from the subsidised petrol programme. Vehicles registered on or after January 1, 2006, are now eligible for registration, effectively bringing vehicles up to 20 years old into the relief scheme.
In August 2026, sales of Oil Marketing Companies dropped 16 percent month-on-month to 1.26 million tonnes due to high retail prices. This reduction in sales highlights the ongoing challenges faced by the industry in the face of fluctuating fuel prices.
