Pakistan to deregulate petrol prices by June 2027

The Pakistani government has announced plans to fully deregulate petrol prices by June 2027, moving toward a market-based system where oil marketing companies can adjust prices daily. High-speed diesel (HSD) deregulation is expected at a later stage, though the government is currently implementing mechanisms to manage diesel costs, such as capping the HSD crack spread to potentially reduce retail prices by up to Rs20 per litre.

In the latest fortnightly adjustment effective September 5, 2026, the Oil and Gas Regulatory Authority (OGRA) reduced petrol prices by Rs3.13 per litre to Rs345.87, while increasing high-speed diesel prices by Rs3.74 to Rs378.05 per litre. These fluctuations are driven by international crude oil markets and the Pakistani rupee's exchange rate.

To manage volatility linked to Middle East tensions and potential disruptions in the Strait of Hormuz, the government has transitioned to a more frequent fuel price review mechanism. Additionally, new import arrangements for fiscal year 2026-27 specify that HSD imports will be routed exclusively through Pakistan State Oil (PSO), while petrol imports will remain aligned with the market shares of individual oil marketing companies.