IFEM in Pakistan's Petrol Price: Rs 7.89 a Litre for Freight, Explained With OGRA's Figures
IFEM adds Rs 7.89 to each litre of petrol and Rs 4.71 to diesel from 17 October 2026. See what OGRA's freight margin pays for and why pump prices can differ.
Short answer: IFEM, the inland freight equalisation margin, is Rs 7.89 in every litre of petrol and Rs 4.71 in every litre of diesel in Pakistan from 17 October 2026. It is OGRA's weighted average cost of moving fuel across the country, added to every litre so the official price is the same everywhere. OGRA resets it about once a week.
Most people never notice the IFEM line on a fuel price sheet. But it is the reason a litre of petrol carries one official price in Karachi, Quetta and Gilgit. We read the Oil and Gas Regulatory Authority (OGRA) IFEM notifications for 10 and 17 October 2026 and the daily price sheet for 20 October, so the figures below come straight from them.
IFEM is Rs 7.89 a litre on petrol from 17 October 2026
OGRA's latest IFEM notification, dated 16 October and effective 17 October 2026, sets the margin at Rs 7.89 a litre for petrol and Rs 4.71 for high speed diesel. Kerosene carries Rs 6.91 and light diesel oil Rs 6.63.
| Product | IFEM from 10 October | IFEM from 17 October | Change |
|---|---|---|---|
| Petrol (motor gasoline) | Rs 7.93 | Rs 7.89 | -Rs 0.04 |
| High speed diesel | Rs 4.71 | Rs 4.71 | None |
| Kerosene oil | Rs 6.96 | Rs 6.91 | -Rs 0.05 |
| Light diesel oil | Rs 6.65 | Rs 6.63 | -Rs 0.02 |
The moves are tiny. Four paisas on petrol barely shows on a fill. The notification calls the figures "provisionally" determined, and each one replaces the week before.
IFEM averages freight so one price works nationwide
OGRA's daily price sheet defines IFEM as "the weighted average cost of transporting the product across the country". Instead of charging remote towns more, the cost of moving fuel from ports and refineries is averaged and spread over every litre sold.
That is what "equalisation" means here. A pump next to a Karachi refinery and a pump in the far north both carry the same Rs 7.89 on petrol. Drivers near the source pay a little more than their own freight would cost. Drivers far away pay less than theirs would.
Without it, the official petrol price would differ from district to district by the cost of trucking. With it, OGRA can publish one figure, such as the petrol price for 20 October, and say it applies across Pakistan.
IFEM sits between the refinery price and the margins
On OGRA's sheet for 20 October 2026, IFEM is added to the ex-refinery or import price, before the oil company margin, the dealer margin and the levies. It is Rs 7.89 of the Rs 381.14 petrol price, about 2.1 per cent.
| Line on OGRA's sheet, 20 October 2026 | Petrol, Rs a litre | Diesel, Rs a litre |
|---|---|---|
| Ex-refinery or import price | 270.40 | 281.71 |
| IFEM | 7.89 | 4.71 |
| Oil marketing company margin | 7.87 | 7.87 |
| Dealer margin | 9.98 | 9.98 |
| Price before levies | 296.14 | 304.27 |
| Petroleum levy and climate support levy | 85.00 | 85.00 |
| Total price | 381.14 | 389.27 |
On diesel, IFEM is Rs 4.71 of Rs 389.27, about 1.2 per cent. OGRA's notice does not explain why the diesel figure is lower than petrol's, and we will not guess. The rest of the build up is explained in the petrol price formula.
The last trip from depot to pump is not in IFEM
IFEM covers moving fuel across the country, not the final leg. OGRA's sheet says the total price excludes "secondary freight", which it defines as the cost of transporting product from the oil company's depot to each petrol pump. That is why some pumps charge slightly more.
So a pump far from its depot can show a price a little above OGRA's figure and still be within the rules. To see what a specific pump is allowed to charge, use the OGRA pump price list, which publishes prices district by district and pump by pump.
A worked example helps. For a 10 litre fill of petrol, IFEM is Rs 78.90 of your Rs 3,811.40. For a 40 litre diesel fill in a van, it is Rs 188.40. Those are our own sums from the 17 October rates.
OGRA has issued a new IFEM notice almost every week
OGRA's IFEM page lists notifications effective on 11, 18, 25 and 28 July, 1, 8, 18, 22 and 29 August, 5, 12, 19 and 26 September, and 3, 10 and 17 October 2026. The usual rhythm is weekly, so check the date on any figure you see quoted.
The legal basis is printed on each notice. It cites section 6(2)(r) of the OGRA Ordinance 2002, the Petroleum Products (Petroleum Levy) Ordinance 1961, the Petroleum Development Levy Rules 1967 and a Petroleum Division order of 15 March 2006. Each notice is marked for publication in the Gazette of Pakistan.
- Open OGRA's IFEM notifications page.
- Open the notice at the top, which is the latest.
- Read the "Rupees Per Liter" column for your fuel.
- Check the "come into force" date under Notes.
- Match it with the IFEM line on the daily price sheet.
The daily sheet and the IFEM notice should agree. On 17 and 20 October both showed Rs 7.89 for petrol. The way to read the OGRA daily sheet walks through every other line. Kerosene buyers can see the same Rs 6.91 inside the kerosene price for 17 October.
Common questions about IFEM
What does IFEM stand for?
Inland Freight Equalisation Margin. OGRA writes it as "inland freight equalization margin" in its notifications.
How much IFEM is in a litre of petrol?
Rs 7.89 from 17 October 2026, down from Rs 7.93 the week before.
Why is petrol the same price in Karachi and Gilgit?
Because IFEM averages the cost of moving fuel across the country and adds the same amount to every litre. Only the final depot to pump trip, secondary freight, can differ.
Who sets IFEM?
OGRA. The 17 October notice is signed by its Joint Executive Director (Finance) and issued under section 6(2)(r) of the OGRA Ordinance 2002.
How often does IFEM change?
About once a week. OGRA issued 16 notices between 11 July and 17 October 2026.
How we verified this
What we checked, where we read it, and what we could not confirm.
Last checked 20 October 2026. We read the IFEM notifications effective 10 and 17 October 2026, reference OGRA-10-12(11)/2026, on OGRA's IFEM notifications page. Both are scanned pages, so we read the page images. The build up, the IFEM definition and the secondary freight note come from the petrol and diesel sheet effective 20 October 2026 on OGRA's price publications page. The percentages and fill examples are our own arithmetic. OGRA does not publish how it calculates each week's IFEM, so we have not described the calculation.
About the author
Global Affairs & Political Economy Writer
Muhammad Hatim is a book lover who started writing because he enjoys it. At Pakistan Era he writes about international relations, geopolitics and the global economy, with a particular interest in South Asia and the forces behind current events.
