Petrol Cut by Re0.43 as Diesel Rises Rs3.47 for September 18

ISLAMABAD: Pakistan has revised petroleum prices for September 18, reducing the price of petrol by 43 paisas per litre while increasing the price of high-speed diesel by Rs3.47 per litre. The adjustment means petrol will now sell for Rs390.79 per litre, while high-speed diesel will cost Rs424.92 per litre under the latest government notification.

The Petroleum Division confirmed the revised rates after the Oil and Gas Regulatory Authority completed its latest review under the country's daily petroleum-pricing mechanism. Petrol had previously been priced at Rs391.22 per litre, meaning consumers will receive only a marginal reduction at filling stations. Diesel, meanwhile, has risen from Rs421.45 per litre to Rs424.92.

The latest revision marks a change from the recent pattern of repeated increases in petrol prices. Although the 43-paisa reduction is small compared with the sharp increases recorded during recent sessions, it is the first downward movement after successive increases pushed petrol close to the Rs400-per-litre level. Diesel users, however, face another increase as transport and commercial fuel costs remain elevated.

Authorities have linked the frequent revisions to movements in international petroleum markets. Under the current framework, domestic prices are calculated using a rolling average of international market rates along with premiums and other associated costs. The system is designed to transmit changes in global energy prices more quickly to Pakistan's domestic market than the previous fortnightly or weekly review arrangements.

Pakistan moved toward more frequent petroleum-price revisions amid heightened volatility in international oil markets and continuing tensions in the Middle East. Disruptions affecting major energy routes, including the Strait of Hormuz, have contributed to uncertainty over crude supplies and shipping costs. As an energy-importing country, Pakistan remains exposed to sudden international price movements and higher transportation expenses.

The increase in diesel is likely to attract particular attention because high-speed diesel is widely used in freight transport, agriculture and commercial activity. Higher diesel costs can increase operating expenses for trucks, buses and other commercial vehicles, potentially feeding through to the cost of transporting food, industrial goods and other products across the country. The limited reduction in petrol, by comparison, offers only modest relief to private motorists.

The government has also introduced a targeted fuel-relief programme to reduce the impact of elevated petrol prices on lower- and middle-income consumers. Under the announced scheme, eligible motorcycle and three-wheeler users can receive relief of Rs100 per litre on a limited monthly quantity, while qualifying cars with engines of up to 800cc are also covered within a separate monthly allowance.

The revised petrol and diesel prices will take effect from September 18. With the daily pricing mechanism now allowing fuel rates to respond more rapidly to global market movements, consumers and businesses may continue to face frequent changes. The next adjustment will depend on international petroleum prices, exchange-rate movements and the other components used in the official pricing formula.