If you have ever wondered why the petrol price in Pakistan today is different from the petrol price two weeks ago, the answer is short: it is the law. Under the Pakistan Petroleum Products (Petroleum Levy) Ordinance, 1961 and subsequent OGRA notifications, fuel prices are revised on the 1st and 15th of every month, twelve months a year, twenty-four times a year, without exception.
This article unpacks exactly how OGRA arrives at the today petrol price in Pakistan, why the cycle is fortnightly (and not weekly or monthly), and what each rupee of the Rs. 409.78 per litre you pay actually represents.
The OGRA pricing formula in one paragraph
OGRA's petrol price formula is a stack of five components: (1) the international ex-refinery price benchmarked to Arab Light crude, converted at the prevailing USD/PKR rate, (2) the Petroleum Development Levy (PDL), (3) the Inland Freight Equalisation Margin (IFEM), (4) the Oil Marketing Company (OMC) margin, and (5) the dealer commission. Add them up, round to two decimal places, and you have the final pump price.
Why every 15 days, not every week, not every month?
The fortnightly cycle is a deliberate trade-off between three competing goals:
- Pass-through speed: A monthly cycle would lag international oil too much and force the government to absorb losses (as happened in 2008 and 2022).
- Stability for consumers: A weekly or daily cycle (as India tried briefly) would create constant pump-side disruption, hoarding and dealer disputes.
- Operational simplicity: Refineries, OMCs (PSO, Shell, Total, GO) and 12,000+ dealers all need a predictable cut-off to manage stock. Two windows per month is the sweet spot.
Step-by-step: how the today petrol price in Pakistan is calculated
Average Arab Light price for the preceding fortnight
OGRA takes the simple average of the spot Arab Light crude price published by Platts/Argus for the 14 days ending 3 days before the notification date. For 13 May 2026, the window was approximately 29 April – 12 May 2026.
Convert into PKR using the SBP weighted-average exchange rate
The crude price in US dollars is multiplied by the State Bank of Pakistan's weighted-average USD/PKR rate for the same window. A 1% rupee depreciation typically adds Rs. 3–4 per litre.
Add the Petroleum Development Levy (PDL)
PDL is currently capped at Rs. 60.00 per litre by the Finance Act 2025. It goes directly to the Federal Government and is the single largest tax component on fuel in Pakistan.
Apply IFEM, OMC margin and dealer commission
The Inland Freight Equalisation Margin (IFEM) ensures roughly uniform pump prices across the country despite huge geographical distances. The OMC margin (PSO, Shell, Total) and dealer commission are notified by OGRA twice a year.
Approval & midnight notification
OGRA submits the working to the Finance Ministry by the 14th and 30th of each month. The Federal Government issues the notification before midnight, and the new today petrol price in Pakistan applies from 00:00 hours.
Breakdown of the current Rs. 409.78 per litre price
| Component | Approx. Rs./L | Share |
|---|---|---|
| Ex-refinery price (crude × FX) | Rs. 327.78 | 80.0% |
| Petroleum Development Levy (PDL) | Rs. 60.00 | 14.6% |
| Inland Freight Margin (IFEM) | Rs. 5.50 | 1.3% |
| OMC margin (PSO/Shell/Total) | Rs. 8.20 | 2.0% |
| Dealer commission | Rs. 8.50 | 2.1% |
| Total | Rs. 409.78 | 100% |
"Roughly 17 of every 100 rupees you spend at the petrol pump in Pakistan goes to the government as PDL and other levies. The rest is a pure pass-through of the world oil price.", Industry analyst
What can push the next notification up or down?
Watch these 4 leading indicators
- Brent & Arab Light spot price, daily, on Bloomberg / Platts
- USD/PKR interbank rate, published by SBP every working day
- Cargo arrival data at Karachi & Port Qasim, affects refinery utilisation
- OPEC+ production decisions, typically the first Sunday of the month
Frequently asked questions
Can the government skip an OGRA notification?
Technically yes, the Finance Ministry can defer a revision for political or social reasons, but it must absorb the resulting loss through the budget. This has happened only twice in the last decade (2018 and 2022).
Why is diesel sometimes cheaper than petrol in Pakistan?
Diesel is taxed at a slightly different PDL slab and historically carried a lower General Sales Tax (GST). On 16 May 2026, however, petrol (Rs. 409.78) and HSD diesel (Rs. 409.58) are within Rs. 0.20 of each other, the smallest spread in two years.
Where can I verify the official OGRA notification?
OGRA publishes every notification on ogra.org.pk. PSO's retail price board is updated within minutes of the gazette.