Pakistan has revised the mechanism for setting petroleum product prices again as tensions between Iran and the United States escalate, according to well-placed sources. The change is intended to help the government manage swings in international oil markets amid regional tensions.
The Petroleum Division has issued a new pricing formula to oil refineries following cabinet approval, the sources said. The revised system marks yet another change to how petrol prices are determined in the country.
| Product | Previous | New | Change |
|---|---|---|---|
| Petrol (per litre) | Rs 377.9130 Oct 2026 | Rs 377.91from 31 Oct 2026 | No change |
| High-Speed Diesel (per litre) | Rs 400.6730 Oct 2026 | Rs 402.96from 31 Oct 2026 | ▲ Rs 2.29 (+0.57%) |
Source: OGRA notified prices. Data: OilPrices.pk, CC BY 4.0. Prices are maximum ex-depot rates; retail pumps may differ slightly.
How the new petrol import price is calculated
Under the revised mechanism, the import price of petrol will be based on the actual cost of Pakistan State Oil (PSO) imported cargo. If that figure is unavailable, the premium and additional expenses linked to the most recent imported cargo may be used instead.
Also read: Petrol and Diesel Prices Rise as OGRA Issues New Notification · Govt says global prices leave no room for oil price cuts
Refineries will be allowed to keep petrol prices at the March 7, 2026 level for the next 30 days, the sources said. Premiums, additional expenses and customs duties will also stay at their March 7 levels. Any gap between the import price and the ex-refinery price will be paid into the petroleum levy by refineries.
The sources added that any benefit from adjustments in the petroleum levy will go exclusively to petrol consumers, which could lead to lower petrol prices.
Reporting and verification duties for refineries
The Petroleum Division has sent the revised instructions to all oil refineries through official letters. Refineries have been ordered to submit daily petrol sales figures to the division and to the Oil and Gas Regulatory Authority (OGRA).
Refineries must also file daily sales reports together with CPRs and payment challans. OGRA and the Petroleum Division will check levy payments and related calculations to confirm compliance with the new mechanism.
Pricing schedule changes since the Iran conflict
Before the Iran conflict broke out, Pakistan revised petroleum prices every 15 days under a fortnightly system. After the reported start of the conflict on February 28, the government moved to a weekly schedule on the same day.
The system was later changed again, with prices reviewed and adjusted daily. The latest revision adds another shift as the government tries to contain fluctuations in global oil markets amid regional tensions.
