Govt Massively Hikes Petrol Price by Rs12.90 Per Litre

Petrol price rises from Rs345.87 to Rs358.77 per litre, while HSD climbs to Rs381.77; latest hike expected to increase transportation and operating costs and add further pressure on household budgets, commodity prices and inflation

Business Desk

ISLAMABAD: The federal government has massively increased the price of petrol by Rs12.90 per litre, while raising the price of high-speed diesel (HSD) by Rs3.72 per litre, adding to the woes of consumers already grappling with soaring prices.

The sharp increase will drive up transportation costs and put further pressure on household budgets, while pushing up the prices of essential goods and services across the country.

According to a notification issued by the Ministry of Energy’s Petroleum Division on Monday, under the revised petroleum pricing mechanism, the new prices will take effect from September 8, 2026 in line with the government’s ongoing practice of adjusting fuel prices based on international oil markets and other cost factors.

The notification reads that the ex-depot price of Motor Spirit (MS), commonly known as petrol, has been increased from Rs345.87 to Rs358.77 per litre, representing an increase of Rs12.90 per litre.

The price of high-speed diesel has also been raised from Rs378.05 to Rs381.77 per litre, showing an increase of Rs3.72 per litre.

The notification was issued by the Petroleum Division after the Oil and Gas Regulatory Authority (OGRA) revised the ex-depot prices of petroleum products under the revised petroleum pricing mechanism.

The latest increase means that petrol has registered a significantly higher adjustment than diesel. The Rs12.90 per litre increase in petrol represents an increase of around 3.7 per cent over its previous ex-depot price, while the HSD price has risen by around one per cent.

Petrol is one of the most widely used petroleum products in the country and its price has a direct bearing on transportation costs. The increase is therefore expected to put additional pressure on motorists and other consumers, particularly through higher commuting and transport expenses.

Diesel is particularly important for the transport, agriculture and industrial sectors because it is widely used by heavy vehicles, buses, trucks, agricultural machinery and other equipment. The Rs3.72 per litre increase could consequently add to operating costs for businesses and transport operators.

The increase in petroleum prices can also have broader implications for the prices of goods and services because transportation is an important component of supply chains. Higher fuel costs can raise the expenses involved in transporting agricultural produce, industrial goods and other commodities from production centres to markets.

In the previous review on Friday, the government raised the price of diesel by Rs3.74 per litre and decreased the petrol price by Rs3.13 per litre.