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Pakistan Set to Raise Petrol Price in Mid-December as Margin Hike Advances

The expected adjustment reflects a proposed boost to supplier margins tied to digitalization of the fuel supply chain.

Overview

  • Petrol prices are expected to rise by about Rs2.40 per litre for the new fortnight starting around December 15, according to officials cited by the Daily Times.
  • The Petroleum Division has submitted a summary on higher dealer and OMC margins for ECC review, with any pricing change requiring ECC approval and federal cabinet ratification.
  • Pakistan Observer reports the ECC approved a 5–10% margin increase, with half effective December 10 and the remainder contingent on fuel network digitalization, with a progress report due by June 1, 2026.
  • The summary includes a proposal to lift the dealer margin from Rs1.10 to Rs1.28 per litre, adding to existing combined margins of Rs16.51 per litre for dealers and OMCs.
  • The move would partly reverse the December 1 price cut, as taxes and levies already account for a large share of pump prices, reported at roughly 37% for petrol and 34% for diesel.