Pakistan Raises Fuel Prices and Launches Petrol Relief Scheme

The Government of Pakistan increased petrol and high-speed diesel prices on September 15 and 16, 2026, as part of a daily pricing mechanism adopted in July to manage international market volatility and Middle East tensions. Petrol prices rose to Rs384.34 per litre and diesel to Rs415.83 per litre by September 16. This system, managed by the Oil and Gas Regulatory Authority of Pakistan, uses a seven-day rolling average of international Platts prices to determine rates, marking a shift from previous weekly and fortnightly cycles.

To offset these costs, Prime Minister Shehbaz Sharif launched a petrol relief scheme providing a Rs100-per-litre discount for non-commercial motorcycles, rickshaws, and vehicles up to 800cc. The program, which limits monthly quotas to 20 to 30 litres, began in Islamabad on September 15 and expanded nationwide by midnight on September 16. The government estimates the subsidy will benefit 11.8 million people at a monthly cost of Rs24.6 billion.

Additionally, the government is reviewing a petroleum smart lockdown to curb national fuel consumption. Proposed measures include implementing a four-day work week with Friday through Sunday as holidays for government and private offices, grounding 50% of government vehicles, and reducing market operating hours.