Petrol Price Cut by Rs2.71 a Litre, Diesel Down 3 Paise from October 14
The government has announced a petrol price cut of Rs2.71 per litre and a 3-paise reduction in high-speed diesel, offering some relief to consumers. The new prices take effect on Wednesday, October 14, according to a notification issued by the Petroleum Division on Tuesday.
After the revision, petrol will retail at Rs392.66 per litre, while high-speed diesel (HSD) will cost Rs396.82 per litre. The announcement came late on Tuesday night, ending days of speculation about the fortnightly fuel price review.
Petrol Price Cut: New Rates from October 14
The Petroleum Division’s notification sets the following pump prices for the new fortnight:
| Fuel | New price (per litre) | Change |
|---|---|---|
| Petrol | Rs392.66 | Down Rs2.71 |
| High-speed diesel | Rs396.82 | Down Rs0.03 |
The government continues to collect heavy taxes on every litre sold. Taxes and duties work out to Rs114 per litre on petrol and Rs100 per litre on diesel, the notification shows. That means roughly a third of what motorists pay at the pump goes to the exchequer, not to the cost of the fuel itself.
OGRA to Set Prices Daily, Says Petroleum Minister
Alongside the price cut, the petroleum minister said the federal cabinet and the prime minister had decided to hand fuel pricing to the Oil and Gas Regulatory Authority (Ogra) on a daily basis. Prices would move in line with international market trends, he said.
The shift is significant. Fuel prices in Pakistan have traditionally been revised every fortnight, leaving consumers exposed to sudden jumps when global oil prices moved sharply between reviews. Daily revisions would pass international changes through faster, in both directions. Our earlier report found that petrol has risen by Rs145 a litre in 2026 as daily price revisions began to bite, so motorists have already felt how quickly the new system transmits increases. Tonight’s cut shows it can transmit decreases too.
What the Relief Means for Households
Petrol is the fuel of private transport. It powers cars, small vehicles, rickshaws and two-wheelers, and its price feeds directly into the monthly budgets of middle and lower-middle class families. Even a cut of a few rupees matters when commuting costs have climbed all year.
Diesel moves the economy’s heavy machinery. It runs trucks, buses, farm equipment, power plants and large generators. The 3-paise cut in diesel is token in size, but diesel prices shape freight costs and, through them, the prices of goods on shop shelves.
Context matters here. Petrol and high-speed diesel are the country’s major revenue earners among petroleum products, with combined monthly sales of about 700,000 to 800,000 tonnes, against barely 10,000 tonnes for kerosene. Small changes in their price ripple across the whole economy.
The Cut Only Partly Reverses Recent Increases
Tonight’s relief should be read against the recent trend. At the start of the month, petrol was selling at Rs387.40 a litre. Even after the Rs2.71 cut, the new price of Rs392.66 is Rs5.26 higher than that level. In other words, the reduction trims the latest increase rather than returning prices to where they were a fortnight ago.
The broader cost-of-living picture stays tight. The IMF has raised Pakistan’s inflation forecast to 9.9 per cent for FY27, and our survey of Peshawar households found families sliding into debt as everyday costs outpace incomes. Against that backdrop, every rupee off the pump price counts, but it does not change the direction of the trend.
FAQs
When do the new fuel prices apply?
The new prices apply from Wednesday, October 14, 2026, under the Petroleum Division’s notification issued on October 13.
What is the new petrol price in Pakistan?
Petrol will retail at Rs392.66 per litre after a cut of Rs2.71 per litre.
What is the new diesel price?
High-speed diesel will cost Rs396.82 per litre after a reduction of 3 paise (Rs0.03) per litre.
How much tax is charged on petrol?
The government levies Rs114 per litre in taxes and duties on petrol and Rs100 per litre on diesel.
Will fuel prices now change every day?
The petroleum minister said the cabinet and the prime minister decided that Ogra would set fuel prices daily, based on international market movements.
