ISLAMABAD: The government on Wednesday announced to increase fuel prices for Thursday, September 3 following high global oil prices in the wake of rising tensions in the Middle East.

The US–Iran conflict and disruptions in the Strait of Hormuz have continued to drive up global petroleum rates, resulting in a daily increase in domestic fuel prices.

According to the official notification, the Petroleum Division increased the petrol price by Rs2.29 per litre to Rs346.16 per litre from Rs343.87. The price of High-Speed Diesel (HSD) has also been increased by Rs1.11 per litre to Rs372.03 per litre.

The cost of petrol supply at Karachi is Rs212.26, while HSD cost of supply is Rs248.43. Rest is government taxes, duties and margins.

Dealer margins are remained at Rs9.98 per litre on the both products. Petroleum Levy unchanged on both the products at Rs80 per litre each. Customs duty is at Rs20.65 per litre for petrol and Rs15.68 per litre for HSD. Climate Support Levy (CSL) has been held steady at Rs5 per litre for both fuels. Oil Marketing Companies (OMCs) margins remain unchanged at Rs7.87 across both products.

On a month-on-month basis, petroleum products sales dropped 16 percent compared to 1.51 million tonnes in July 2026. Petrol sales stood at 0.67 million tonnes in August, down 9 percent from the previous month. The sale of HSD sales declined sharply, falling 32 percent month-on-month. The continuous rise in petroleum products led the sale volume down of oil marketing companies.

Pakistan’s petroleum dealers have demanded a monthly fuel price review system, but the government has rejected this request in favor of frequent, short-term price adjustments.—WASIM IQBAL