Pakistan Raises Petrol Price, Cuts Diesel Rate For Oct 7

The federal government has revised petroleum prices for October 7, increasing petrol by Rs1.19 per litre while reducing the price of high-speed diesel by Rs1.91 per litre. The latest daily adjustment keeps fuel prices under pressure as Pakistan continues to respond to international oil market volatility and domestic supply concerns.

According to a notification issued by the Petroleum Division, petrol has been fixed at Rs394.83 per litre for Wednesday. High-speed diesel, widely used in transport, agriculture and freight movement, will be sold at Rs395.85 per litre after the latest reduction.

The revision follows another price change announced a day earlier, when petrol was raised by 88 paisas per litre and high-speed diesel was cut by Rs1.88 per litre for October 6. The back-to-back adjustments show how the daily pricing mechanism is now transmitting global price movements into domestic rates more quickly than the previous weekly system.

The government adopted the daily review system in July after renewed tensions between the United States and Iran increased uncertainty in global energy markets. Officials moved away from weekly revisions as international crude prices, freight costs and supply risks became more volatile, especially with concerns around key shipping routes in the Middle East.

Fuel costs remain a sensitive issue for households, transporters and businesses because Pakistan imports most of its petroleum requirements. Even small movements in international crude prices, exchange rates and shipping costs can affect retail prices at filling stations, adding pressure to inflation and operating expenses across the economy.

Prime Minister Shehbaz Sharif had earlier announced a targeted petrol relief plan for lower-income consumers, offering a proposed Rs100 per litre discount for motorcycles, three-wheeler rickshaws and cars up to 800cc. The plan was designed to cushion smaller vehicle users from rising fuel costs, with monthly relief limits tied to estimated fuel consumption.

Under that proposal, millions of two-wheeler and three-wheeler users would receive support on limited monthly fuel purchases, while owners of small cars would also qualify for relief. The scheme reflects the government’s attempt to balance fiscal pressure with public concern over the rising cost of commuting and essential transport.

The government has also reintroduced austerity and fuel conservation measures as prices remain elevated. These include restrictions on operating hours for markets, shopping centres and commercial venues, while takeaway and home delivery services remain exempt from some timing limits.

International oil markets remain exposed to several risks, including OPEC+ supply decisions, sanctions, conflict in the Middle East and threats to shipping lanes such as the Strait of Hormuz and the Red Sea. For Pakistan, the next steps will depend on whether global supply conditions stabilise and whether the daily pricing system continues to produce frequent changes at the pump.