Petrol Prices Slashed in Pakistan: New Rates for 2026

Pakistan Fuel Prices Drop: Significant Relief for Commuters and Farmers as Petrol Rates Slashed

In a move set to provide much-needed breathing room for the inflation-hit public, the federal government announced a substantial reduction in petroleum prices late Wednesday night. Effective for the upcoming fortnight, the price of petrol has been cut by Rs10.28 per litre, while high-speed diesel (HSD) saw a decrease of Rs8.57 per litre.

New Fuel Rates at a Glance

Following the recommendations of the Oil and Gas Regulatory Authority (Ogra) and shifting trends in the international energy market, the Petroleum Division confirmed the following price adjustments:

Petrol: Now Rs253.17 per litre (down from Rs263.45).

High-Speed Diesel (HSD): Now Rs257.08 per litre (down from Rs265.65).

Why These Price Cuts Matter

The reduction in petrol prices is a direct win for the middle and lower-middle classes. As the primary fuel for motorbikes, rickshaws, and small private cars, this cut helps lower the daily cost of commuting.

On the other hand, the dip in HSD rates is expected to have a broader impact on the economy. Because diesel powers heavy transport vehicles, trains, and essential agricultural machinery like tractors and threshers, this price drop could help stabilize the costs of vegetables and other food staples by reducing transport overheads.

The Hidden Costs: Levies and Margins

While the price at the pump is decreasing, the government still maintains a significant revenue stream from petroleum products. Even with a zero percent General Sales Tax (GST), consumers are paying:

Petroleum Levy: Rs82 on petrol and Rs78 on diesel.

Climate Support Levy (CSL): Rs2.50 per litre.

Customs Duty: Approximately Rs16–17 per litre.

These collections remain vital for the national exchequer. After recovering Rs1.161 trillion through the petroleum levy in FY2025, the government aims for a 27% increase, targeting Rs1.470 trillion in the current fiscal year.