Pakistan Cuts Petrol by Rs0.84, Diesel by Rs2.63 for September 25

The federal government has reduced petrol and high-speed diesel prices for the third consecutive review, providing another reduction in fuel rates for consumers across Pakistan. Petrol has been cut by Rs0.84 per litre to Rs389.28, while high-speed diesel has been reduced by Rs2.63 per litre to Rs412.12. The revised ex-depot prices will take effect from September 25, 2026.

Before the latest adjustment, petrol was priced at Rs390.12 per litre and high-speed diesel at Rs414.75. The Petroleum Division said the new rates were calculated after the Oil and Gas Regulatory Authority revised prices under the petroleum pricing mechanism approved by the federal government. The official explanation linked the adjustment to changes in international petroleum benchmarks, premiums and other pricing components.

The latest reduction extends a sequence of falling prices across three consecutive reviews. Petrol had previously been cut by Rs1.70 per litre and then by another Rs1.93 before the latest 84-paisa reduction. Taken together, those revisions have lowered the petrol rate by Rs4.47 per litre. High-speed diesel has fallen by a combined Rs9.96 per litre after successive reductions of Rs3.12, Rs4.21 and Rs2.63.

Pakistan has been operating a more frequent petroleum price review system amid volatility in international energy markets. In July, the government shifted to a daily pricing framework after earlier moving from fortnightly to weekly adjustments during heightened uncertainty in global oil supplies. Authorities said the mechanism was intended to allow domestic prices to reflect changes in international market rates more quickly.

The new rates have direct implications for households, transport operators and businesses. Petrol is widely consumed by motorcycles, rickshaws, cars and other private vehicles, while high-speed diesel is heavily used by trucks, buses, agricultural machinery, power generators and commercial transport. Changes in diesel costs can therefore feed into freight and operating expenses across several sectors of the economy, while petrol prices have an immediate effect on everyday mobility costs.

Fuel taxation remains a major component of retail pricing. The government continues to collect taxes and duties amounting to Rs114 per litre on petrol and Rs100 per litre on high-speed diesel. Despite the latest reductions, domestic fuel prices remain substantially above levels seen before the sharp international energy-market disruption earlier in the year, which prompted a series of conservation measures and changes to the pricing schedule.

Consumers will begin paying the revised rates from September 25. Under the current pricing framework, subsequent changes will continue to depend on international benchmark movements, premiums and other components used by regulators to calculate ex-depot prices. The next official review will determine whether the recent downward sequence continues or changes direction in response to global market conditions.