Petrol and Diesel Prices Reduced for Second Consecutive Week

The government of Pakistan has reduced the price of petrol by Rs6 per litre and high-speed diesel (HSD) by Rs6.80 per litre, according to a notification issued by the Petroleum Division on May 22, 2026.

Following the decrease, the price of petrol is set at Rs403.78 per litre, while the price of HSD stands at Rs402.78 per litre. The Petroleum Division stated in a press release that these new prices became effective on May 23, 2026.

This represents the second consecutive week that the government has lowered fuel costs. During the previous week, the prices of both petrol and diesel were reduced by Rs5 per litre.

The price adjustments impact different sectors of the economy based on fuel usage. Petrol is primarily utilized in two-wheelers, rickshaws, small vehicles, and private transport, which directly affects the budgets of the lower-middle and middle classes. High-speed diesel is used predominantly for large generators and the heavy transport sector.

The government began revising petroleum prices every Friday night following the start of the US-Israeli war on Iran on February 28, 2026. Although the conflict is now paused, it previously triggered a global fuel crunch due to the closure of the Strait of Hormuz, a waterway through which one-fifth of the global supply of oil and gas normally passes during peacetime.

The volatility in fuel pricing began shortly after the outbreak of the conflict. On March 6, 2026, the government initially increased the prices of diesel and petrol by Rs55 per litre. This was followed by the announcement of austerity measures on March 9, 2026.

In the weeks following the initial hike, Prime Minister Shehbaz rejected recommendations to further increase fuel prices on three separate occasions, despite an increase in the global market.

However, on April 2, 2026, Finance Minister Muhammad Aurangzeb and Petroleum Minister Ali Pervaiz Malik announced a targeted fuel subsidy programme alongside significant price increases. Petrol prices rose by 43 per cent and high-speed diesel prices rose by 55 per cent.

The price trajectory shifted again on April 3, 2026, when Prime Minister Shehbaz reduced the petroleum levy by Rs80 per litre, which brought the price of petrol down to Rs378 per litre.

Further reductions were implemented on April 10, 2026, when Prime Minister Shehbaz decreased the price of petrol by Rs12 per litre and diesel by Rs135 per litre.