ISLAMABAD: Pakistan’s government on Friday slashed the price of petrol by Rs3.13 per litre while increasing the price of diesel by Rs3.74 per litre amid volatility in international oil markets.
Under the revised rates, petrol will now be sold at Rs345.87 per litre, while diesel will cost Rs378.05 per litre.
The revised prices will remain in effect until Monday, in line with the government’s practice of adjusting fuel prices based on international oil prices and other cost factors.
In the previous review on Thursday, the government had increased the petrol price by Rs2.84 per litre and the diesel price by Rs2.28 per litre.
Pakistan’s daily fuel price mechanism
The government shifted to a daily fuel price review mechanism amid heightened volatility in global oil markets triggered by renewed tensions in the Middle East. The move is aimed at ensuring that changes in international oil prices are reflected more quickly in domestic fuel rates.
The government had earlier replaced the fortnightly pricing system with weekly reviews following the outbreak of the Middle East conflict.
The government has revised the prices of petroleum products for the next three days@Official_PetDiv #News #RadioPakistan https://t.co/k1HJsX2QBE pic.twitter.com/Vtk3DaFJEN
— Radio Pakistan (@RadioPakistan) September 4, 2026
Petrol is mainly used in private transport, small vehicles, rickshaws and two-wheelers, and changes in its price affect the middle and lower-middle classes.
Similarly, changes in diesel prices also impact the public at large, as it is mainly used in the heavy transport sector, power plants and large generators.
Oil prices set for over 6% weekly gain
Oil prices have climbed to a six-week high as escalating U.S.-Iran hostilities raise concerns over potential supply disruptions through the Strait of Hormuz.
Brent crude futures were up 6.1% for the week, while US West Texas Intermediate (WTI) crude futures had gained 8.3%.
ALSO READ: Oil Prices Set for Over 6% Weekly Gain amid Renewed US-Iran Tensions
Both contracts edged lower on the day, however, with Brent crude down 75 cents, or 0.79%, at $94.77 a barrel by 1230 GMT, while WTI fell 95 cents, or 1.04%, to $90.35.
The rally in oil prices, combined with a much steeper rise in fuel prices, has pushed inflation and government borrowing costs higher worldwide and intensified concerns that the global economy could be heading for a hard landing.
