Government cuts petrol and diesel prices after latest fuel price review

The federal government has announced a reduction in petroleum prices, providing some relief to consumers across Pakistan.

The federal government has announced a reduction in petroleum prices, providing some relief to consumers across Pakistan. According to the latest notification issued by the Petroleum Division, the price of petrol has been reduced by Rs2.20 per litre, while high-speed diesel (HSD) has become cheaper by Rs1.50 per litre.

After the reduction, petrol will now be available at Rs327.62 per litre, while the price of high-speed diesel has been revised to Rs380.86 per litre. The new prices will come into effect from August 8, 2026, according to the official notification.

The government continues to impose taxes and duties on petroleum products, including Rs110 per litre on petrol and Rs96 per litre on high-speed diesel. These charges remain a significant component of fuel prices paid by consumers.

The latest reduction follows changes in international oil market trends and fluctuations in global fuel prices. In recent months, petroleum rates in Pakistan witnessed major increases due to uncertainty in international markets, particularly after tensions and conflict-related developments in the Middle East affected oil supply concerns.

High-speed diesel prices had reached a record level of Rs520.35 per litre on April 3, after rising from Rs281 per litre following the escalation of tensions between the United States and Iran. Similarly, petrol prices had climbed to Rs458.41 per litre during the same period after starting from around Rs266 per litre in early March.

Earlier, Petroleum Minister Ali Pervaiz Malik announced that fuel prices would be adjusted more frequently, including possible daily revisions, due to rapid changes in international oil markets. The government assigned the Oil and Gas Regulatory Authority (OGRA) the responsibility of determining fuel prices based on global trends.

The decision to introduce daily fuel price adjustments faced opposition from the All Pakistan Dealers Association, which raised concerns and indicated that it may consider a protest strategy.

Petrol remains one of the most widely used fuels in Pakistan, mainly powering private vehicles, motorcycles, rickshaws, and small transport vehicles. Any change in petrol prices directly affects household budgets, particularly for middle- and lower-income groups.

High-speed diesel also plays a critical role in the economy as it is widely used in heavy transport, agricultural machinery, power generation plants, and industrial operations. Changes in diesel prices often influence transportation costs and can impact the prices of essential goods.

The latest reduction is expected to provide limited relief to consumers, while future fuel prices will continue to depend on international crude oil markets, exchange rates, and government taxation policies.