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What is IFEM, and why does it change?

IFEM pools the cost of moving fuel inland, so every city pays one price. A new figure is set almost every week.

Published 13 October 2026.

In this note
  1. What is IFEM?A shared pot for freight.
  2. Why is the petrol price the same in every city?1 national price, and no city figures.
  3. Where is IFEM in the price?1 of 3 lines in getting it to the pump.
  4. How often does IFEM change?13 times in 58 sheets for petrol.
  5. Why does IFEM change?Freight, and once, import losses.
  6. What was IFEM before 2026?Older sheets and kerosene scans.
  7. What else do people ask?6 quick answers.

IFEM is the Inland Freight Equalisation Margin. It pools the cost of moving fuel inland, so petrol and diesel cost the same in every city.

On 13 October 2026, IFEM was Rs 7.93 of a litre of petrol and Rs 4.71 of a litre of diesel.

It changes because the Oil and Gas Regulatory Authority (OGRA) sets a new figure almost every week. Its notifications do not say why.

Many people read IFEM as a fixed trucking charge. The record shows it reset often, and once in 2026 it carried more than freight.

What is IFEM?

Imported fuel is priced at Karachi port, as OGRA’s daily sheet shows. From there it travels inland, and a longer trip costs more.

IFEM shares that cost out. Every litre carries the same IFEM wherever it is sold, so no town pays for its own distance.

In 2014 the Competition Commission of Pakistan said IFEM covers 2 trips: crude oil to refineries, and fuel from supply points to depots.

Its purpose, the Commission wrote, is to keep the same price of petrol, diesel, kerosene and light diesel oil across the country.

Why is the petrol price the same in every city?

OGRA notifies 1 price for the whole country, and IFEM pays for that. The cost of distance is spread over every litre.

That is why every city page on this site shows the same national rate. There is no separate Lahore or Quetta price to show.

The record holds no freight figure for any city. OGRA’s daily sheet prints 1 IFEM figure for each fuel, and nothing below it.

So I cannot tell you what a trip to any city costs, or which places pay more into the pool than they take out.

Some remote pumps sit in Special Freight Areas. Their freight is also paid through IFEM, The News reported.

It put that freight at Rs 2.826 billion, for 422 pumps, in the year to June 2026.

In September 2026 the Oil Companies Advisory Council asked for these areas to be surveyed again. The last full check was about 30 years ago.

Where is IFEM in the price?

IFEM is 1 of 3 lines in “Getting it to the pump”. The other 2 are the oil company’s margin and the dealer’s margin.

13 October 2026PetrolDiesel
IFEMRs 7.93Rs 4.71
Oil company marginRs 7.87Rs 7.87
Dealer marginRs 9.98Rs 9.98
Getting it to the pumpRs 25.78Rs 22.56
Pump priceRs 395.37Rs 396.85

So on 13 October, IFEM was 2.01% of petrol’s printed total and 1.19% of diesel’s. It is small, but never zero in this record.

IFEM is line M on petrol’s build-up. On diesel’s build-up it has been line O since OGRA changed the sheet on 20 August 2026.

The margins matched across fuels that day, so IFEM made the whole gap. The note on margins explains the other 2 lines.

How often does IFEM change?

OGRA sets IFEM by a separate notification, not on the daily sheet. It issued 13 of them between 25 July and 10 October 2026.

The daily sheet carries each new figure. In this record, petrol’s IFEM changed 13 times in 58 sheets, and diesel’s 10 times.

In force fromPetrolDiesel
21 JulyRs 6.95Rs 4.43
25 JulyRs 7.16Rs 4.53
28 JulyRs 5.47Rs 4.53
1 AugustRs 7.34Rs 4.56
8 AugustRs 7.48Rs 4.63
18 AugustRs 7.35Rs 3.94
22 AugustRs 7.44Rs 3.94
29 AugustRs 7.45Rs 3.96
5 SeptemberRs 7.60Rs 4.02
12 SeptemberRs 7.61Rs 4.02
19 SeptemberRs 7.71Rs 4.06
26 SeptemberRs 7.91Rs 4.15
3 OctoberRs 8.02Rs 4.75
10 OctoberRs 7.93Rs 4.71

The first row is the first sheet in this record. Every other row is a day when a new IFEM notification came into force.

Petrol’s IFEM ran from Rs 5.47 (28 July) to Rs 8.02 (3 October). Diesel’s ran from Rs 3.94 (18 August) to Rs 4.75 (3 October).

The biggest moves were on petrol. It fell Rs 1.69 on 28 July, then rose Rs 1.87 on 1 August.

Why does IFEM change?

Each notification says OGRA sets the figure “provisionally”, replacing the one before. None of the 7 I opened gives a reason.

IFEM pays for moving fuel, so a change in that cost can move it. The record holds no freight data to show which cost moved.

Once, the change was far bigger. The News reported on 26 April 2026 that the Government raised diesel’s IFEM by Rs 30.21 a litre.

It said the rise covered losses Pakistan State Oil (PSO) faced on costly imports. Petrol’s IFEM rose by Rs 3.15 at the same time.

Those weeks come before this record starts on 21 July 2026. So I cannot show them line by line, only report them.

So IFEM is not only a freight charge. In April 2026, as reported, it also carried a supplier’s import losses.

What was IFEM before 2026?

From 2006 to 2011, OGRA’s build-up printed a line called “Inland Freight”. It did the same job as a freight charge, not a pooled margin.

So I keep it apart from today’s IFEM. On petrol it was Rs 2.30 on 16 April 2006 and Rs 6.20 on 1 May 2011.

In between, it was printed as Rs 0.00 on 6 sheets, from 16 October 2008 to 1 January 2009.

Kerosene’s IFEM appears on OGRA’s photographed price sheets. These are scanned figures, read by machine and checked against a second document.

It was Rs 2.46 on 1 March 2020 and Rs 8.96 on 19 August 2026. The highest checked was Rs 10.69, on 16 May 2026.

These scanned figures are kept apart from the daily record. They are not added to it, averaged with it or charted beside it.

Common questions

What does IFEM stand for?

Inland Freight Equalisation Margin. It is a line in OGRA’s price build-up that pools the cost of moving fuel inland.

Why is the petrol price the same in every city?

OGRA notifies 1 national price, and IFEM shares out the cost of moving fuel. Every litre carries the same IFEM.

How much of a litre is IFEM?

On 13 October 2026, Rs 7.93 of petrol’s Rs 395.37, and Rs 4.71 of diesel’s Rs 396.85.

How often does IFEM change?

About once a week. OGRA issued 13 IFEM notifications between 25 July and 10 October 2026.

Who sets IFEM?

OGRA, by notification under the OGRA Ordinance, 2002 and the Petroleum Levy Ordinance, 1961. Each notification replaces the last.

Is IFEM different in each city?

No. OGRA prints 1 IFEM figure for each fuel. The record holds no freight cost for any single city.

Sources

  1. Every figure for 13 October 2026OGRA price publication 17147, the 13 October 2026 build-upPrimary · SHA-256 archived
  2. IFEM on every sheet, 21 July to 13 October 2026OGRA’s daily price build-up, as this record holds itPrimary · SHA-256 archived
  3. Who sets IFEM, under which laws, and how oftenOGRA’s list of IFEM notificationsPrimary
  4. The wording of a notificationOGRA’s IFEM notification in force from 10 October 2026Primary · scan
  5. What IFEM covers, and its purposeCompetition Commission of Pakistan opinion on IFEM, 2014Official
  6. The April 2026 IFEM riseThe News report on the April 2026 IFEM risePress
  7. Special Freight Areas, and the request to survey themThe News report on oil companies seeking a review of freight zonesPress
  8. Petrol’s “Inland Freight”, 2006 to 2011OGRA’s fortnightly price build-up, as recovered herePrimary · SHA-256 archived
  9. Kerosene’s IFEM, 2020 to 2026OGRA’s kerosene scans, as read and checked herePrimary scan · machine-read

The daily IFEM figures are printed lines, not calculated. OGRA’s IFEM notifications are scans and are not part of this record; their petrol and diesel figures match the daily sheets.

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