ISLAMABAD: The petrol price in Pakistan will rise by Rs1.20 a litre from Thursday, taking it to Rs393.86, while high-speed diesel becomes cheaper by 17 paisas at Rs396.65. The Petroleum Division announced the new rates in a notification on Wednesday: https://www.dawn.com/news/2037134/govt-raises-petrol-price-by-rs120-per-litre-reduces-high-speed-diesel-rate-by-re017-per-litre
The revised rates take effect on Oct 15, the latest adjustment under the daily price-fixing mechanism that has been in place since July 17. Just a day earlier, the October 14 revision had cut petrol by Rs2.71 a litre, so the new increase partly reverses that relief.
Petrol price Pakistan: new rates take effect on Thursday
Petrol moves up from its current level to Rs393.86 a litre after the Rs1.20 increase. High-speed diesel drops by Re0.17 to Rs396.65 a litre.
The two fuels have been moving in small, often opposite, steps in recent weeks. The October 10 adjustment cut petrol by 66 paisas to Rs398.30 while raising diesel by 52 paisas to Rs396.24: https://featurepakistan.com/pakistan-petrol-price-cut-66-paisas-diesel-up-october-10/ A week earlier, the October 1 revision had set petrol at Rs387.40 and diesel at Rs400.35 a litre: https://featurepakistan.com/petrol-price-pakistan-rs387-40-diesel-rs400-35-per-litre/
The tax burden stays heavy
A large share of the pump price remains tax. The notification keeps taxes and duties at Rs114 a litre on petrol and Rs100 a litre on diesel.
That means more than a quarter of what a motorist pays for petrol goes to the exchequer before a single drop is burned. The levy component barely moves even when international prices fall, which is why pump prices have stayed far above their pre-crisis levels. Calls to cut the petroleum levy have grown louder, with the Jamaat-e-Islami protesting high fuel prices since August, but the government has held the line, and an earlier diesel subsidy plan showed how tightly the treasury is managing fuel costs: https://featurepakistan.com/diesel-subsidy-plan/
A long way down from the April peaks
The current rates look very different from the spring. On April 3, petrol peaked at Rs458.41 a litre, up from Rs266 in early March, while high-speed diesel touched Rs520.35, rising from Rs281 after the US-Iran war began on Feb 28.
Since then, weekly revisions that ran from early March, and then daily fixing since July 17, have dragged both fuels down from those records. Petrol is now about Rs65 a litre below its April peak, and diesel roughly Rs124 below its own high.
The relief is real, but it has come with volatility. Daily adjustments mean prices can jump or dip overnight, and the fuel trade has pushed back against the system. The All Pakistan Dealers Association and the Transport Goods Association have both rejected daily fixing.
Who feels it most
Petrol feeds straight into household budgets. It runs private cars, motorcycles and rickshaws, so increases hit the middle and lower-middle classes first. Monthly sales of petrol and diesel together run at 700,000 to 800,000 tonnes, against just 10,000 tonnes of kerosene.
Diesel moves the freight economy. It powers the trucks that carry flour, vegetables and milk, and runs farm tubewells, tractors and generators. When diesel crossed Rs400 earlier this month, fares and food prices followed.
The government has paired the price regime with fuel-saving steps. Markets must close by 9pm, building on an earlier measure that had already ordered closures at 8:30pm: https://featurepakistan.com/markets-close-830pm/ — and official-vehicle fuel allocations have been cut by 50 percent for three months. On Sep 13, the prime minister announced a relief scheme for motorcycles, auto-rickshaws and vehicles of up to 800cc, aimed at the commuters most exposed to pump prices.
For households already stretched, each revision matters. A recent survey in Peshawar found families borrowing to cope with rising prices: https://featurepakistan.com/peshawar-inflation-survey-families-debt/
Frequently asked questions
What are the new petrol and diesel prices from Oct 15?
Petrol will cost Rs393.86 a litre after a Rs1.20 increase, and high-speed diesel will cost Rs396.65 after a 17-paisa cut, according to the Petroleum Division notification.
How are fuel prices decided in Pakistan now?
Prices are fixed daily under a mechanism in place since July 17, when the job moved to the Oil and Gas Regulatory Authority.
Why do petrol and diesel move in opposite directions?
The two fuels track different international benchmarks and cost structures, so a single day's movement in global markets can push one up and the other down.
How much tax is included in fuel prices?
Rs114 a litre on petrol and Rs100 a litre on diesel, in taxes and duties.
