The federal government has approved another fuel price adjustment, raising the price of petrol by Rs4.07 per litre and diesel by Rs4.04 per litre for the first half of October 2025. The announcement came through a notification issued by the Finance Division late Tuesday night, confirming that the revised rates will remain in effect until October 15.
With this adjustment, the price of petrol now stands at Rs268.68 per litre, compared to the earlier Rs264.61. Meanwhile, the price of high-speed diesel (HSD) has reached Rs276.18 per litre, up from Rs272.77. The notification stated that these adjustments were made after reviewing recommendations from the Oil and Gas Regulatory Authority (OGRA) and considering fluctuations in international petroleum markets.
The government had previously maintained the petrol price at Rs264.61 during the last fortnight, while increasing diesel by Rs2.78 per litre. This time, however, both major fuels have seen a notable upward revision.
Petrol is the primary fuel for motorcycles, rickshaws, and small vehicles, which are heavily used by middle- and lower-income households. An increase in its cost has a direct impact on daily commuting expenses for millions of Pakistanis, particularly those who rely on two-wheelers and public transport for work and routine mobility. For many urban and rural workers, even a marginal increase in per litre cost can strain monthly budgets.
High-speed diesel, on the other hand, is central to the country’s transport and agricultural sectors. It powers freight trucks, buses, trains, tractors, and tube wells. This makes it a highly inflation-sensitive commodity. When diesel prices increase, the transportation cost of essential goods, including vegetables and other staple food items, rises almost immediately. This cost push typically passes down to consumers, adding to inflationary pressures in the wider economy.
The Finance Division clarified that the new prices were determined in line with movements in the international oil market, which saw prices fluctuate in September. OGRA’s review factored in global supply trends, currency exchange rates, and import costs before forwarding its recommendations to the government.
Economists point out that the adjustment is likely to accelerate inflation at the retail level, particularly in food and transport segments. Farmers relying on diesel-powered irrigation systems and small businesses dependent on transport costs are expected to feel the pressure. Analysts also highlight that higher global fuel prices, combined with Pakistan’s exchange rate volatility, are leaving limited room for the government to absorb shocks without passing costs onto end consumers.
For ordinary citizens, however, the impact is straightforward: higher fuel bills at the pump and costlier goods in the market. The adjustment also comes at a time when households are already grappling with elevated electricity bills and rising food prices due to flood-induced supply chain disruptions earlier this monsoon season.
As the government continues to make fortnightly fuel price adjustments, the situation underscores Pakistan’s heavy reliance on imported petroleum products and its vulnerability to international price shifts. Policy experts argue that greater investment in renewable energy and domestic refining capacity could help reduce long-term exposure to such external shocks.
For now, the new prices will remain applicable until October 15, when the Finance Division and OGRA will once again review international oil market movements to determine the next revision.
Follow the PakBanker Whatsapp Channel for updated across Pakistan’s banking ecosystem.