ISLAMABAD: Pakistan’s government on Friday slashed the prices of petrol and High Speed Diesel (HSD) by Rs6 and Rs6.80 per litre, respectively, for the next week.
The price of petrol is now per Rs403.78 litre from earlier Rs409.78 per litre, according to a notification issued by the Petroleum Division.
The High-Speed Diesel is now available at Rs402.78 per litre from earlier Rs409.58 per litre.
The new prices are effective from May 23. The move came as a minor relief after a recent sharp increase in fuel prices.
The price cut was announced through an official notification issued by the Petroleum Division, which said the revised rates would come into effect after midnight under the government’s latest weekly fuel price review mechanism.
A week ago the government had reduced the petrol and diesel prices by Rs5 per litre.
Petrol, widely used in motorcycles, rickshaws, and private vehicles, directly impacts the budgets of middle- and lower-income households.
Diesel, primarily consumed by heavy transport, agricultural machinery, and railways, has broader inflationary effects due to its role in moving goods across the country.
Pakistan had already approved a one-month extension for the fuel subsidy previously granted to motorcyclists, public transport operators, and goods carriers across the country, with Prime Minister Shehbaz Sharif endorsing the decision.
The targeted relief measures were originally introduced earlier this month to protect bikers, farmers, and transporters from global oil price shocks triggered by the ongoing US-Israel military conflict with Iran.
Pakistan’s Energy Ministry has also urged the federal government to reduce petroleum levy and fuel tax rates in the upcoming budget, warning that elevated energy costs are worsening affordability pressures and could undermine economic and social stability.
In budget recommendations submitted to the Finance Ministry for fiscal year 2026-27, the Ministry’s Petroleum Division proposed lowering the annual petroleum levy collection target from 1.5 trillion to Rs 1 trillion for the financial year 2026-2027.
The higher levy collection target was projected under ongoing fiscal commitments linked to the International Monetary Fund (IMF) programme conditionality.
