ISLAMABAD: The government on Friday cut the prices of petrol and diesel by Rs6-7 per litre each with immediate effect for the week ending May 29 owing to lower global prices during the last week.

As such, the ex-depot price of high-speed diesel (HSD) was fixed at Rs402.78 per litre for next week instead of Rs409.58 at present, down by 1.2 per cent or Rs6.80 per litre.

The diesel price has come down from a peak of Rs520.35 recorded on Apr­il 10. HSD is considered the most inflationary item given its maximum use in freight transportation.

Likewise, the ex-depot rate of petrol was set at Rs403.78 per litre for the next week against Rs409.78 at present, showing a decrease of Rs6 or 1.2pc.

Since the IMF condition of restoring an average petroleum levy of Rs80 per litre on both products had been achieved last week, the government passed on the minor drop in global prices to the domestic market. As such, the petroleum levy on petrol currently stands at Rs117.41.

On the other hand, the petroleum levy on HSD now stands at Rs42.60 per litre.

The government is currently charging about Rs97 per litre on HSD in the form of customs duty, petroleum levy and Rs2.5 climate support levy besides inland freight equalisation margin.

Meanwhile, the total tax on petrol amounts to Rs144 per litre, including petroleum levy, customs duty and a Rs2.5 per litre climate levy.

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

Petrol and HSD are the major revenue spinners with their monthly sales of about 700,000 to 800,000 tonnes compared to just 10,000 tonnes of monthly demand for kerosene.

Published in Dawn, May 23rd, 2026