ISLAMABAD: The government on Friday redu­ced prices of petrol and diesel by Rs5 per litre each, with immediate effect, for the week ending May 22, owing to lower global prices over the past week.

The ex-depot price of high-speed diesel (HSD) was fixed at Rs409.58 per litre for next week, down from Rs414.58, a decrease of 1.2 per cent or Rs5 per litre. Diesel prices have fallen from a peak of Rs520.35 on April 10. HSD is considered the most inflationary fuel due to its extensive use in freight transportation.

Similarly, the ex-depot price of petrol was set at Rs409.78 per litre for next week, down from Rs414.76, reflecting a decrease of Rs5 or 1.2 per cent.

Following the Inter­national Monetary Fund (IMF) condition of restoring an average Rs80 per litre petroleum levy on both products last week, the government passed on a slight reduction in global prices to domestic consumers. The petroleum levy on petrol currently stands at Rs117.41 per litre, while the levy on HSD is Rs42.60 per litre.

The government is currently charging about Rs100 per litre on HSD in the form of customs duty, petroleum levy, and a Rs2.5 climate support levy, in addition to the inland freight equalisation margin.

The total tax on petrol is about Rs144 per litre, including petroleum levy, customs duty, and the Rs2.5 climate levy.

The government is also charging around Rs21 per litre petroleum levy on kerosene and about Rs16 per litre on light diesel oil.

Petrol and high-speed diesel remain the major revenue sources, with monthly sales of about 700,000 to 800,000 tonnes, compared to just 10,000 tonnes of monthly demand for kerosene.

The government has been revising petroleum prices every Friday following the now-paused US-Israeli war on Iran, which began on Feb 28.

Last week, the government approved a hike of Rs14.92 per litre in petrol and Rs15 on HSD prices.

Published in Dawn, May 16th, 2026