News
Pakistan Raises Petrol to Rs398.96, Diesel to Rs395.72 per Litre
By Mariam Khan
Real Estate Analyst
3 min read
The federal government has announced another increase in petroleum prices, effective October 9, 2026. Petrol rises by Rs2.31 per litre, from Rs396.65 to Rs398.96, and high-speed diesel rises by Rs0.78, from Rs394.94 to Rs395.72. According to the Petroleum Division, the revision reflects international market developments, including changes in benchmark prices and associated costs.
| Fuel | Previous price | New price | Increase |
|---|---|---|---|
| Petrol | Rs396.65 per litre | Rs398.96 per litre | Rs2.31 |
| High-speed diesel | Rs394.94 per litre | Rs395.72 per litre | Rs0.78 |
Why Petrol Is Now Within Rs1.04 of Rs400
At Rs398.96, petrol is Rs1.04 short of Rs400 per litre (our own calculation). In our report on the October 3 rates, diesel was the fuel close to that mark. Since the October 6 revision, when petrol was Rs393.64, it has risen by Rs5.32 (our own calculation). The prices of Rs396.65 and Rs394.94 listed as the previous prices come from an intervening revision that we have not covered, so the change over that period should be checked against the Petroleum Division's notifications.
Why Diesel Matters More to Construction
Diesel is the fuel most closely tied to heavy machinery, generators and the trucks that deliver cement, steel, bricks and aggregate. A Rs0.78 increase is small, and diesel at Rs395.72 is below its Rs397.76 level of October 6 (our own comparison). So the latest move in diesel is limited. The cumulative effect depends on what happens in later revisions.
Why International Prices Are the Context
The Petroleum Division attributes the revision to international market developments. International oil prices rose sharply on October 8 amid attacks on shipping around the Strait of Hormuz, which we covered in Global Oil Prices Surge Above $104. The Petroleum Division's statement as relayed does not say that this particular rise reflects the October 8 move, so we have not linked the two directly. The World Bank has also said energy prices are likely to stay elevated, as in World Bank Warns High Energy and Freight Costs Will Keep Pressure on Pakistan.
Why Repeated Small Increases Matter for Budgets
Repeated increases can put pressure on contractors' operating budgets and housing construction costs, even when each one is small. Developers and contractors should track the direction over several revisions and keep fuel costs in their contingencies, since single-day changes can reverse.
What This Means for Developers and Contractors
Contractors paying for transport and machinery fuel should expect continued small adjustments, and should watch whether petrol crosses Rs400. The effect on delivery charges for building materials depends on what transporters decide to pass on. Current prices are published by the Petroleum Division.