Pakistan Lowers Fuel Prices and Expands Relief Scheme

The Government of Pakistan reduced petrol and high-speed diesel (HSD) prices for three consecutive days between September 23 and September 25, 2026. On September 24, petrol fell by Rs1.93 to Rs390.12 and HSD by Rs4.21 to Rs414.75. By September 25, prices dropped further, with petrol decreasing by 84 paisas to Rs389.28 and HSD falling by Rs2.63 to Rs412.12. The Pakistan Oil and Gas Regulatory Authority and the Petroleum Division, Federal Government of Pakistan linked these daily revisions to international oil-market indicators, including Platts rates.

To counter fuel volatility, Prime Minister Shehbaz Sharif introduced a special relief scheme for motorcycles, three-wheeler rickshaws, and cars with engines up to 800cc. The government later modified the program to increase accessibility for motorcycle and rickshaw users by removing the five-litre minimum purchase requirement and replacing it with a weekly Rs500 token. Additionally, the eligibility age limit for these vehicles was increased from 15 to 20 years. Beneficiaries of vehicles up to 800cc continue to receive one 10-litre token every 10 days.

These measures follow a daily pricing mechanism adopted in July to manage market volatility caused by tensions between the United States and Iran. In tandem with fuel adjustments, the Cabinet Division of Pakistan implemented austerity measures on September 17 that restricted the operating hours of commercial venues and shops.