ISLAMABAD: The federal government has announced a Rs1.97 per litre reduction in the prices of both petrol and high-speed diesel (HSD), providing modest relief to consumers amid fluctuating global oil prices. The revised fuel rates came into effect from midnight on July 4, 2026.
According to a notification issued by the Ministry of Energy (Petroleum Division), the ex-depot price of petrol (Motor Spirit) has been reduced from Rs299.50 per litre to Rs297.53 per litre.
Similarly, the price of High-Speed Diesel (HSD) has been cut from Rs311.47 per litre to Rs309.50 per litre, reflecting a decrease of Rs1.97 per litre.
The new prices will remain in force until the government's next weekly fuel price review.
Pakistan revises petroleum product prices every week based on fluctuations in international crude oil prices and changes in the Pakistani rupee's exchange rate against the US dollar. The pricing mechanism is aimed at aligning domestic fuel prices with global market trends while accounting for applicable taxes, levies, and freight costs.
Petrol is the most widely used fuel in Pakistan, primarily consumed by motorcycles, cars, and small vehicles, making any change in its price significant for millions of households. High-speed diesel, on the other hand, is widely used in heavy transport, agriculture, and industrial sectors, meaning price adjustments can influence transportation costs and the prices of essential goods.
The latest reduction is expected to offer limited relief to motorists and businesses facing high transportation expenses. However, analysts note that the impact on overall inflation is likely to remain modest unless international oil prices continue to decline in the coming weeks.
Consumers and businesses will now look ahead to the next weekly review, which will determine whether the downward trend in fuel prices continues or if global market developments lead to fresh adjustments. The government is expected to continue monitoring international energy markets before announcing the next revision.
