Key Takeaways
- The government has reduced the price of high-speed diesel (HSD) by Rs1.96 per litre.
- Petrol prices have been increased by Rs4.61 per litre.
- The changes are effective from September 22, 2026, and are based on global market conditions.
The government has adjusted the prices of high-speed diesel (HSD) and petrol, effective from September 22, 2026. The ex-depot price of HSD has been reduced by Rs1.96 per litre to Rs422.08, while petrol prices have been increased by Rs4.61 to Rs393.75 per litre.
According to a press release issued by the Petroleum Division, these changes were necessitated by global developments, including changes in Platts rates, premiums, and incidentals. The previous review saw a reduction in petrol prices by Rs1.65 per litre and a decrease in HSD prices by Re0.88 per litre.
The new prices will remain effective until September 22, 2026, and the government continues to levy Rs114 per litre in taxes and duties on petrol and Rs100 per litre on diesel.
The decision to adjust fuel prices comes amidst a backdrop of fluctuating global oil prices. On the day of the announcement, Brent crude futures and US West Texas Intermediate crude dipped below $100 a barrel, their lowest levels in 12 days.
The reduction in HSD prices marks a significant decrease from the peak of Rs520.35 recorded on April 3, 2026, and a decline from the initial price of Rs281 per litre after the US-Iran war broke out on February 28, 2026.
Petrol prices have also seen fluctuations, peaking at Rs458.41 on April 3, 2026, after starting its upward trajectory from Rs266 in the first week of March, 2026. The government has reintroduced austerity measures in response to rising fuel prices, including market closures and reduced fuel allocations for official vehicles.
The Petroleum Division stated that the price changes were made to align with international market rates, premiums, and other relevant factors. The Oil and Gas Regulatory Authority (OGRA) revised the prices under the petroleum pricing mechanism issued by the federal government.
These adjustments are part of ongoing efforts to manage the economic impact of global oil price fluctuations on the domestic market. The government continues to monitor and adjust fuel prices to ensure they reflect current market conditions.
