How petrol prices are set in Pakistan: and why they change every two weeks

Every 1st and 16th of the month, the Finance Division announces petrol and diesel prices for the next fortnight on OGRA's recommendation. The number is not arbitrary; it is a sum of components.

What is in a litre

1. Ex-refinery / import price, Platts Arab Gulf average for the previous fortnight, converted at the interbank rupee rate.
2. Inland freight equalisation margin, so the price is the same nationwide.
3. Oil marketing company and dealer margins, fixed per litre, revised occasionally.
4. Petroleum levy, a fixed per-litre tax that has become the government's main revenue lever on fuel.
5. Sales tax, currently zero-rated on petrol and diesel; the levy does the work instead.

Because the levy is fixed per litre, a fall in international prices does not pass through fully when the government chooses to raise the levy in the same revision.

Why the rupee matters

A 1% move in USD/PKR moves the import component by roughly Rs 1.5–2 per litre. Track it on our dollar rate page.

What it means for you

• Fuel cost per kilometre for a 1,300 cc sedan at 12 km/l: about Rs 22 per km at current prices.
• Diesel drives transport and food prices with a lag of 2–4 weeks.

Searchable records every revision on the petrol price hub.