Pakistan Petrol Price Hits Rs370.80 as Oil Market Tightens
Key Developments:
- Petrol price rises to Rs370.80 per litre
- HSD reaches Rs398.04 per litre
- Oil prices cross $100 amid shipping disruption
- Pakistan faces difficult fuel-pricing choices
ISLAMABAD (Business Recorder/Arab News) — September 11, 2026: Pakistan has raised petrol and high-speed diesel (HSD) prices for the fourth consecutive revision, with petrol now selling at Rs370.80 per litre and HSD at Rs398.04 per litre from September 11, as renewed disruption around major regional shipping routes pushes international oil prices higher.
The latest revision increased petrol by Rs3.05 per litre and HSD by Rs5.37 per litre. The Petroleum Division said the revised rates were determined under the government’s petroleum pricing mechanism, with the new prices taking effect on Friday.
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The latest increase follows a particularly sharp rise earlier in the week. According to Business Recorder, petrol has risen by Rs24.93 per litre over the preceding four days, while HSD has increased by Rs19.99 per litre during the same period.
The Petroleum Division notification stated that “OGRA has revised the ex-depot prices of the petroleum products for 11th September, 2026” under the revised pricing mechanism.
The latest increases coincide with renewed volatility in global oil markets. Reuters reported that Brent crude settled at $107.63 a barrel on September 10, while US West Texas Intermediate crude reached $102.48, with both benchmarks gaining more than 6% during the session.
Clients queue at a gasoline station in Islamabad, Pakistan, on April 24, 2026. (AFP/File).
The escalation has also affected shipping through the Strait of Hormuz, a major energy route. Preliminary ship-tracking data cited by Reuters showed only seven vessel transits on September 10, compared with a 10-day average of 14. Reuters also reported that no liquefied natural gas tankers crossed the waterway that day.
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The pressure is not confined to Hormuz. Reuters reported that developments around Yemen’s Red Sea coast have added another source of uncertainty for regional energy and shipping routes. At the same time, Saudi crude loadings through Yanbu, a route that can help bypass Hormuz, have increased from August levels, providing some alternative capacity.
Pakistan’s exposure to international oil movements is significant because the country depends heavily on imported energy. Higher international crude prices and increased shipping risks can raise the cost of petroleum imports and, in turn, place pressure on domestic fuel prices.
The government introduced daily petroleum pricing in July amid substantial fluctuations in international oil markets. Petroleum Minister Ali Pervaiz Malik had said the change was necessary because of volatility in global prices.
Vessels at the Strait of Hormuz, as seen from Musandam, Oman, September 6, 2026. CREDIT: REUTERS/Stringer.
The immediate issue, however, extends beyond the daily price adjustment. Pakistan’s petroleum pricing structure also relies heavily on taxation. Dawn reported on September 9 that the government was collecting Rs114 per litre in taxes and duties on petrol and Rs100 per litre on diesel at the time of that revision.
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This leaves policymakers with limited options when global prices rise sharply. Reducing petroleum taxes could soften the impact on consumers but would reduce government revenue. Maintaining the taxes while absorbing part of the international increase through a subsidy could protect consumers temporarily, but would put additional pressure on public finances.
The alternative is to allow international price increases to pass through to consumers, preserving government revenue but increasing transport and household costs. The original Business Recorder analysis argues that Pakistan’s difficulty in providing targeted fuel support makes a blanket subsidy a less efficient option.
The article also points to Pakistan’s commitments under the IMF programme and Resilience and Sustainability Facility (RSF) as additional constraints on petroleum-tax policy. These considerations mean that any decision to reduce fuel-related taxation would have wider fiscal and policy implications rather than being simply a short-term response to rising crude prices.
For now, international market conditions remain the key pressure point. Reuters reported that oil prices have been supported by concerns over prolonged disruption to regional supplies, while reduced traffic through Hormuz has heightened uncertainty over future energy flows.
Source: OGRA / Ministry of Energy (Petroleum Division). CREDIT: Dawn News.
The latest domestic increase therefore places the government before a difficult policy balance: protect consumers from the full impact of global oil prices, preserve fiscal revenues, or absorb part of the increase through government support. With crude remaining above $100 and regional shipping risks continuing, the pressure on Pakistan’s petroleum pricing system is likely to remain closely watched.
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