Government reduces petrol price by Rs1.49 and diesel by Rs2.73 per litre
The government reduced the price of petrol by Rs1.49 per litre and high-speed diesel by Rs2.73 per litre, bringing new retail rates to Rs387.54 and Rs402.24 per litre respectively. Announced by the Petroleum Division on September 29, 2026, the downward revision applies for September 30, following shifting global Platts rates and international market trends.
Global Crude Declines Drive Domestic Relief
The modest price cuts follow a turbulent period for energy markets shaped by ongoing Middle East conflicts. Global oil prices softened as investors weighed recovering crude exports from the Middle East against persistent supply disruption fears linked to the US-Israeli war on Iran. Brent crude futures declined $1.96, or 1.86 percent, to $103.32 a barrel, while US West Texas Intermediate dropped $1.95, or 2.11 percent, to $90.65, according to market data.
High-speed diesel peaked at Rs520.35 on April 3 after climbing from Rs281 per litre following the outbreak of hostilities on February 28. Similarly, petrol touched a peak of Rs458.41 in April up from Rs266 in March. Heavy taxation continues to anchor the retail cost structure, with the government levying Rs114 per litre in duties on petrol and Rs100 per litre on diesel.
Austerity Measures and Subsidies Target Consumer Strain
To cushion the economic blow on lower-income groups dependent on two-wheelers, rickshaws, and small transport, the federal administration rolled out targeted relief initiatives. Deputy Prime Minister and Foreign Minister Ishaq Dar reviewed the implementation of the fuel subsidy scheme on September 29, noting that roughly 7.60 million registrations have been completed alongside 7.71 million token redemptions.
Simultaneously, the administration reintroduced austerity policies. Commercial markets must shut down by 9 pm, and official vehicle fuel allocations face a 50 percent reduction over a three-month window.
Daily Pricing Shift and Revenue Stakes
The Oil and Gas Regulatory Authority now dictates fuel pricing on a daily basis rather than weekly schedules, a policy shift enacted on July 17 by Petroleum Minister Ali Pervaiz Malik to reflect rapid international fluctuations.
Petrol and high-speed diesel constitute major fiscal revenue streams, pulling in monthly sales volumes between 700,000 and 800,000 tonnes.