Petrol Falls to Rs387.54, Diesel to Rs402.24 in Second Straight Price Cut

The government cut petrol prices by Rs1.49 per litre and high-speed diesel by Rs2.73 per litre for the fortnight starting September 30, 2026, bringing the new pump prices to Rs387.54 for petrol and Rs402.24 for diesel. It is the second straight reduction in consecutive fortnightly reviews, taking the cumulative decline to Rs3.76 per litre for petrol and Rs6.29 per litre for diesel across the two adjustments.

What changed this cycle

The Finance Ministry's notification, based on OGRA's ex-refinery price computation, applies from September 30 through the middle of October. Diesel — the fuel that moves freight, agricultural machinery and public transport, and so feeds directly into transport costs across the economy — saw the larger cut in both percentage and absolute terms, continuing a pattern from the previous review where diesel also fell by more than petrol.

Why prices are easing

The reduction tracks a retreat in international crude prices. Global oil markets spiked earlier in September after President Trump rejected a proposed Iranian de-escalation offer over the Strait of Hormuz and signalled bombing would resume, a move we covered in detail at the time. Since then, trader expectations of an eventual US-Iran settlement have pulled Brent crude back down from its highs, and Pakistan's fortnightly pricing formula — which passes changes in the international ex-refinery cost directly into the domestic notified price — has now reflected two rounds of that retreat in a row.

How this sits against the relief scheme

The notified price is separate from the government's Rs100-per-litre fuel relief scheme, which subsidises pump prices below the notified rate and was running Rs10 billion a month over its original budget as of the last review. A falling notified price does not by itself reduce what the relief scheme costs the government per litre, since the subsidy is calculated as the gap between the notified price and the discounted price motorists actually pay at the pump; whether the narrower notified price this cycle changes that per-litre gap has not been detailed in the government's announcement.

The bigger picture

Pakistan imports the bulk of its refined fuel and crude, which means pump prices here move with a lag behind whatever is happening in the Gulf. Our previous coverage of the September 22 review came before the Hormuz standoff escalated; this review is the first full accounting of prices coming back down since that spike. For a full explanation of how Pakistan's fortnightly pricing mechanism works — from ex-refinery cost to the retail price at the pump — see our fuel pricing explainer.

Motorists should not expect the relief to be permanent or linear: the same formula that delivered two consecutive cuts will just as quickly reverse them if Hormuz tensions flare again before the next review in mid-October.

Build Better Pakistan's Energy Desk tracks every fortnightly OGRA price review and will update this piece when the next notification is announced.