Petrol price hiked by Rs12.90, HSD’s by Rs3.72
The government raised the ex‑depot price of petrol by Rs12.90 per litre and high‑speed diesel by Rs3.72 per litre, citing rising US‑Iran tensions and Hormuz disruptions.
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Desk Analysis
How This Affects the Exchange
Sector Effect
Negative · Do not buy
Higher fuel prices raise costs for Transport, Cement, Steel and Automobile sectors – avoid buying related stocks.
Sectors & Direction
Desk read
Desk call: Do not buy · Negatively affected
- TransportNegatively affected
- CementNegatively affected
- SteelNegatively affected
- AutomobileNegatively affected
Companies
Mentions in This Briefing
Sectors: Transport, Cement, Steel, Automobile — Negative · Do not buy. PSX tickers: OGDC, PPL, MARI, PSO, SNGP, ATRL. Higher fuel prices raise costs for Transport, Cement, Steel and Automobile sectors – avoid buying related stocks.
Full Story
Open on Business Recorder## Government announces fuel price increase
The Petroleum Division notified that, effective September 8, the ex‑depot price of petrol rose to Rs358.77 per litre, up Rs12.90 from Rs345.87. High‑speed diesel (HSD) was lifted to Rs381.77 per litre, an increase of Rs3.72.
## Reasons behind the hike
Officials linked the rise to escalating geopolitical tensions between the United States and Iran and ongoing disruptions in the Strait of Hormuz, which have pushed global crude and refined product prices higher.
## Breakdown of price components
* Petrol – Ex‑refinery import price climbed from Rs235.42 to Rs248.32 per litre. * HSD – Ex‑refinery import price moved from Rs271.18 to Rs274.90 per litre. * Levies & margins – Petroleum Levy (Rs80/litre), Climate Support Levy (Rs5/litre), dealer profit margin (Rs9.98/litre) and oil marketing company margin (Rs7.87/litre) remain unchanged. * Customs duties – Fixed at Rs21.02 per litre for petrol and Rs15.68 per litre for HSD. * Inland Freight Equalisation Margin (IFEM) – Adjusted to Rs7.60 per litre for petrol and Rs4.02 per litre for HSD.
## Outlook
The Petroleum Pricing Committee, chaired by Minister for Petroleum Ali Pervaiz Malik, reiterated its plan to move toward deregulation by June 2027, but short‑term price adjustments will continue to reflect international market volatility.
## Potential market impact
Higher fuel costs are expected to raise operating expenses for transport, cement, steel and automobile manufacturers, while oil‑and‑gas producers may see improved margins on domestic sales.