The federal government has increased the price of petrol by Rs4.45 per litre despite a reported decline in international crude oil prices, according to the latest notification issued by the Ministry of Energy. The revised fuel prices came into effect on August 6, 2026, following recommendations by the Oil and Gas Regulatory Authority (OGRA).
Under the new pricing structure, petrol now costs Rs333.01 per litre, up from Rs328.56 per litre. Meanwhile, the price of high-speed diesel (HSD) has been reduced by Rs2.00 per litre, bringing its retail price down from Rs385.86 to Rs383.86 per litre.
The increase in petrol prices has surprised consumers because international oil prices have eased in recent weeks. However, officials explained that domestic fuel prices are determined through a broader pricing mechanism that takes into account factors such as petroleum levy, exchange rates, transportation costs, taxes, and other government-imposed charges in addition to global crude prices.
According to government sources, the latest revision is linked to changes in the petroleum levy. The levy on high-speed diesel has reportedly been increased by Rs1.44 per litre, rising from Rs70.86 to Rs72.30 per litre. Officials said these adjustments are part of the government’s broader fiscal strategy while maintaining the existing petroleum pricing framework.
The latest announcement comes only a day after the government had reduced petroleum prices for August 5, cutting petrol by Rs3.39 per litre and high-speed diesel by Rs4.07 per litre. The new notification effectively reverses the earlier petrol reduction while providing only limited relief to diesel consumers.
The revised fuel prices are expected to impact transportation costs, logistics, and inflation, as petrol is widely used by private vehicles, motorcycles, and commercial transport across Pakistan. Economists believe continued fluctuations in fuel prices could also influence the prices of essential goods and services.
The government is expected to review petroleum prices again under its regular pricing mechanism, with future adjustments depending on international oil market trends, exchange rate movements, and fiscal policy decisions.
