Petrol price hiked by Rs2.29, HSD’s by Rs1.11

On Wednesday, the government announced a fuel price hike taking effect on Thursday, September 3. The increase was prompted by high global oil prices due to tensions in the Middle East, particularly the US-Iran conflict and disruptions in the Strait of Hormuz. The official notification stated that the Petroleum Division raised the petrol price by Rs2.29 per litre, bringing the new price to Rs346.16 per litre, up from Rs343.87.

High-Speed Diesel (HSD) saw a price increase of Rs1.11 per litre, raising the new price to Rs372.03 per litre.

The cost of petrol in Karachi is currently Rs212.26, while HSD costs Rs248.43. These figures account for government taxes, duties, and dealer margins, which remain at Rs9.98 per litre for both products. Petroleum Levy, Customs duty and Climate Support Levy (CSL) on both products also remain unchanged at Rs80 per litre, Rs20.65 per litre, and Rs5 per litre respectively. Oil Marketing Companies (OMCs) margins, at Rs7.87 for both fuels, remain unchanged.

Despite the rising prices, monthly petroleum products sales dropped by 16 percent compared to July 2026, with petrol sales falling to 0.67 million tonnes in August, a 9 percent decrease from the previous month. HSD sales declined more sharply, falling 32 percent month-on-month. The continuous rise in petroleum products led to a decline in sales volume for oil marketing companies.

While some dealers in Pakistan have called for a monthly fuel price review system, the government has rejected this request in favor of frequent, short-term price adjustments.