Govt reduces petrol price by Rs1.49 per litre, high-speed diesel rate by Rs2.73

Govt reduces petrol cost by Rs1.49 per litre, high-speed diesel rate by Rs2.73.

Key points

• News Desk Published September 29, 2026 Updated September 29, 2026 10: 51pm.
• The petrol cost had peaked at Rs458.41 on April 3 after beginning its upward trajectory from Rs266 in the first week of March.
• While HSD will cost Rs402.24 per litre, after the revision, petrol will retail at Rs387.54 per litre.
• Deputy Prime Minister and Foreign Minister Ishaq Dar on Sept 29 appreciated the success of the scheme, saying that it reflected a "whole of government" approach.
• The cost of HSD has come down from a peak of Rs520.35 recorded on April 3.

News Desk Published September 29, 2026 Updated September 29, 2026 10: 51pm. Join our Whatsapp Channel. Add Dawn as a trusted source.

In practice, the administration on Tuesday reduced the rate of petrol by Rs1.49 per litre and that of high-speed diesel (HSD) by Rs2.73 per litre.

While HSD will cost Rs402.24 per litre, after the revision, petrol will retail at Rs387.54 per litre. The administration continues to levy Rs114 per litre in taxes and duties on petrol and Rs100 per litre on diesel.

According to the Petroleum Division's notification, the new rates are applicable for Sept 30 (Wednesday).

For context, the cost of HSD has come down from a peak of Rs520.35 recorded on April 3. Its cost had kicked off rising from Rs281 per litre after the US-Iran war broke out on February 28.

For context, the petrol cost had peaked at Rs458.41 on April 3 after beginning its upward trajectory from Rs266 in the first week of March.

Meanwhile, the administration has reintroduced a raft of austerity measures in response to rising fuel costs against the backdrop of the ongoing Middle East conflict. Under these measures, markets are required to close by 9pm and fuel allocations for official vehicles has been cut by 50 per cent for three months.

On September 13, Prime Minister Shehbaz Sharif additionally unveiled a "relief scheme" for users of motorcycles, autos and vehicles of up to 800cc to "alleviate the burden" of rising global oil rates.

As well as the Oil and Gas Regulatory Authority (Ogra), the State Bank of Pakistan (SBP) and all provinces, had created "concerted" efforts for the scheme, chairing a session of the National Steering Committee on Fuel Subsidy to review the implementation of the scheme, the deputy premier observed that the information, IT and petroleum ministries.

According to It was, to date, around 7.60 million registrations have been successfully produced, and the token redemption process has entered the second week. Moreover, 7.71m tokens have been redeemed.

Previously, on July 17, Petroleum Minister Ali Pervaiz Malik confirmed that fuel costs would now be fixed on a daily basis due to fluctuations in international market rates after renewed hostilities between Iran and the US.

Prior to this, the administration had been announcing weekly revisions to fuel costs since early March, alongside measures for the conservation of fuel against the backdrop of feasible oil supply disruptions due to the ongoing conflict in the Middle East. The federal administration in April additionally confirmed targeted relief measures to provide subsidised fuel.

According to The petroleum minister, the cabinet and the prime minister had decided to offer the Oil and Gas Regulatory Authority (Ogra) the responsibility of deciding fuel costs on a daily basis based on international market trends.

Petrol is mainly applied in private transport, small vehicles, rickshaws and two-wheelers, and changes in its rate affect the middle and lower-middle classes.

As it is mainly employed in the heavy transport sector, power plants and sizeable generators, similarly, changes in diesel rates additionally impact the public at sizeable.

Petrol and high-speed diesel (HSD) are the major revenue earners, with monthly sales of regarding 700, 000 to 800, 000 tonnes, compared to just 10, 000 tonnes of monthly demand for kerosene.

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For now, govt reduces petrol price by Rs1.49 per litre, high remains the part of the story worth watching, and further updates are likely as more details are confirmed.