Petrol price rises Rs12.90, diesel Rs3.72 as new rates take effect

The government has increased the price of petrol by Rs12.90 per litre and high-speed diesel (HSD) by Rs3.72 per litre, following a fresh revision in petroleum prices.

 

Under the new rates, petrol will be available at Rs358.77 per litre, while HSD will cost Rs381.77 per litre. The revised prices will take effect from September 8, 2026.

 

The government continues to impose taxes and duties of Rs114 per litre on petrol and Rs100 per litre on diesel.

 

The latest increase comes amid continued volatility in international oil markets and heightened tensions in the Middle East.

 

HSD prices have declined substantially from their record high of Rs520.35 per litre, reached on April 3, while petrol had peaked at Rs458.41 per litre during the same period.

 

The government shifted from weekly to daily fuel price adjustments in July following renewed volatility in global oil markets linked to tensions between Iran and the United States. Under the revised mechanism, the Oil and Gas Regulatory Authority (OGRA) determines petroleum prices based on international market movements.

 

Petrol is widely used in private vehicles, motorcycles, rickshaws and other small transport, making price changes particularly significant for middle- and lower-income households.

 

Diesel prices have a broader impact on the economy as HSD is heavily used by heavy transport, power plants and large generators.

 

Petrol and HSD remain the government's major petroleum revenue sources, with combined monthly sales running at around 700,000 to 800,000 tonnes, compared with roughly 10,000 tonnes of monthly kerosene demand.