Fuel Prices • Pakistan

Petrol Has Become Rs 18.48 More Expensive in Two Days. Diesel Rs 7.90. Here Is the New Price at the Pump and Why It Is Happening So Fast

By Life in Pakistan Editorial

9 September 2026

Petrol in Pakistan is now Rs 364.35 per litre and high-speed diesel is Rs 385.95 per litre, after the federal government raised ex-depot prices for the second time in two days. The combined increase over the last 48 hours is Rs 18.48 per litre for petrol and Rs 7.90 for diesel, and the cause is the same on both days: the new daily-pricing mechanism, which the Oil and Gas Regulatory Authority (Ogra) is now using to pass through global crude-oil moves to Pakistani consumers every 24 hours. Brent crude, the global benchmark, is now trading near $100 a barrel as the Iran war in the Strait of Hormuz has disrupted tanker traffic in the Persian Gulf.

The new prices at the pump, effective 9 September 2026

The Ministry of Energy (Petroleum Division) issued the new prices on Tuesday night, with effect from 9 September 2026. The new ex-depot prices are:

The 9 September hike comes on top of the 8 September hike, which added Rs 12.90 to petrol and Rs 3.72 to diesel. Together, in just two days, petrol is Rs 18.48 per litre more expensive and diesel is Rs 7.90 per litre more expensive. The cumulative percentage move for petrol is roughly 5.3 per cent in 48 hours; for diesel, roughly 2.1 per cent.

Why the hikes are coming every day now

Pakistan moved to a daily-pricing mechanism for petrol and high-speed diesel earlier in 2026. Under the new framework, Ogra is authorised to determine and announce ex-depot prices every 24 hours, without prior approval from the prime minister or the federal government. The mechanism is designed to pass through changes in international crude prices to Pakistani consumers more quickly, and to remove the lag between global moves and domestic pump prices that defined the old fortnightly and monthly revision cycle.

The mechanism works in both directions. When global crude prices fall, domestic pump prices fall. When global crude prices rise, domestic pump prices rise. The current run of daily hikes reflects the current run of daily global moves up, driven by the Iran-Israel-US war in the Middle East and the disruption of tanker traffic in the Strait of Hormuz.

The new mechanism is also why the hikes are showing up so fast. Under the old fortnightly mechanism, the same global move would have been smoothed across two weeks. Under daily pricing, the same move is passed through in 24 hours. The retail consumer sees the full impact immediately.

What is driving the global price

Brent crude, the international benchmark, has risen to nearly $100 a barrel. US crude (WTI) is now $94.63 a barrel. UAE crude, the grade most relevant to Pakistan’s imports, is now $110.77 a barrel. The drivers, in order of current market weight, are:

• The US has destroyed five Iranian oil tankers in the past week, in response to Iranian Revolutionary Guard attacks on US Navy warships near the Strait of Hormuz.
• Iran has retaliated with ballistic-missile strikes on the US Al-Azraq base in Jordan, hitting two US Navy destroyers and the F-35 and F-15 hangars there.
• The Iranian Revolutionary Guard has seized a US submarine drone in the Strait of Hormuz, escalating the risk premium on tanker traffic through the strait.
• Houthi forces in Yemen have launched attacks on Saudi Arabian cities and energy infrastructure, with 73 civilians injured in attacks on Abha, Khamis Mushait, Jazan, and Najran.
• The Saudi-led coalition has announced a firm response, raising the prospect of a wider regional war in the Middle East.

The combined effect of these moves is that roughly a fifth of global seaborne oil trade is now passing through a region where the security situation is deteriorating every day. Insurance premiums on tanker traffic through the Strait of Hormuz have spiked, and the market is pricing in a sustained risk premium rather than a one-off shock.

What this means for transport fares and food prices

The Goods Transport Association has already announced a 5 per cent increase in freight rates. The increase takes effect immediately and applies to all routes. Transporters have said the move is unavoidable given the cumulative diesel price increase over the past two days, and the prospect of further increases if the global crude price continues to rise.

Food prices typically follow transport costs with a one-to-two week lag. Vegetables, fruit, dairy, and bakery goods are particularly sensitive to diesel costs, because the supply chain from the farm to the retail outlet is diesel-intensive. Consumers should expect a 2-3 per cent pass-through into retail food prices over the next two weeks, and a further pass-through if the global crude price continues to rise.

The government has not changed the petroleum levy or the dealer margin

Levies and profit margins for petrol and high-speed diesel remain unchanged in the latest Ogra notification. The change in ex-depot prices is driven entirely by the change in the ex-refinery import price, which has gone up by Rs 5.58 for petrol and Rs 4.18 for diesel. In other words, the full impact of the global crude price move is being passed through to consumers, without any cushion from the federal government.

The federal government retains the power to absorb part of the ex-refinery price increase by reducing the petroleum levy, or to add to the levy to capture part of the upside. The decision to leave the levy unchanged means the government is collecting the full revenue on the higher prices. The revenue upside at the current rate of consumption is significant.

What the next 24 hours could look like

If the global crude price stabilises around the current level, the next 24-hour revision on 10 September is likely to be a small move, in either direction. If the global crude price continues to rise, the next revision is likely to be a further hike. The Iran-Israel-US war is currently the principal driver, and there is no diplomatic off-ramp in sight.

Pakistan’s daily-pricing mechanism means the retail consumer now sees the full global move within 24 hours, in either direction. The benefits of falling global prices will also pass through faster, but the current direction is up.

The bottom line

Petrol is now Rs 364.35 per litre and diesel is Rs 385.95 per litre, effective 9 September 2026. The combined increase over the last 48 hours is Rs 18.48 for petrol and Rs 7.90 for diesel. The hikes are the result of the new daily-pricing mechanism, which is passing through the global crude price shock from the Iran-Israel-US war in the Middle East to Pakistani consumers in 24 hours. Brent crude is now near $100 a barrel. Transport fares have already gone up 5 per cent. Food prices typically follow with a one-to-two week lag.