Islamabad: The government increased the price of petrol by PKR 1.20 per litre and reduced high speed diesel by PKR 0.17 in its latest revision, effective Thursday.

Petrol will retail at PKR 393.86 per litre, while diesel will cost PKR 396.65, according to the Petroleum Division’s notification issued on Wednesday.

Taxes and duties remain at PKR 114 per litre on petrol and PKR 100 per litre on diesel.

The revision comes amid continued volatility in energy markets linked to the Middle East conflict. Pakistan shifted to daily fuel price adjustments in July, replacing the weekly revisions introduced in March.

Petroleum Minister Ali Pervaiz Malik said at the time that the cabinet and prime minister had assigned the Oil and Gas Regulatory Authority responsibility for determining daily prices based on international market trends.

Despite the latest petrol increase, both fuels remain below their April 3 peaks. Petrol reached PKR 458.41 per litre that day, while diesel climbed to PKR 520.35.

The government has also reintroduced fuel conservation and austerity measures. Markets are required to close by 9pm, while fuel allocations for official vehicles have been reduced by 50 per cent for three months.

Prime Minister Shehbaz Sharif announced a separate relief scheme on September 13 for users of motorcycles, rickshaws and vehicles with engine capacities of up to 800cc.

Petrol is widely used in motorcycles, rickshaws and private vehicles, making its price particularly relevant to household transport budgets. Diesel powers heavy transport, power plants and large generators, linking its cost to freight and other economic activity.

Petrol and diesel are also major sources of government revenue, with monthly sales of approximately 700000 to 800000 tonnes each.