• Fuel prices reduced for third straight week; petroleum levy on diesel raised
• Global oil prices fall 2pc as market awaits possible US-Iran deal
ISLAMABAD: The government on Friday cut the prices of petrol and high-speed diesel (HSD) by Rs22 per litre each with immediate effect for the week ending June 5, owing to lower global prices.
The ex-depot price of HSD was fixed at Rs380.78 per litre for the next week compared to Rs402.78 at present, a decrease of Rs22 per litre.
Likewise, the ex-depot rate of petrol was set at Rs381.78 per litre against Rs403.78 at present, also a reduction of Rs22 per litre.
This is the third consecutive weekly downward revision in petroleum prices, amounting to a cumulative reduction of about Rs33 per litre.
Meanwhile, global oil futures fell 2pc on Friday and were on track for their steepest weekly decline since early April after reports that the US and Iran had reached agreement on a potential ceasefire extension.
Last week, the government had cut the prices of petrol and diesel by Rs6-7 per litre each for the week ending May 29, also owing to lower global prices.
In the latest revision, the government took advantage of lower international prices and revised the petroleum levy on HSD upward by Rs11 per litre. The diesel price has now come down from a peak of Rs520.35 per litre recorded on April 10.
HSD is considered one of the most inflationary items because of its extensive use in freight transportation and large generators. Petrol is mostly used in private transport, small vehicles, rickshaws and two-wheelers and has a direct bearing on the budget of the middle and lower-middle classes.
PM’s ‘promise fulfilled’
A statement from the Prime Minister’s Office said the price cut was in line with PM Shehbaz Sharif’s promise that relief would be passed on to the people as soon as international markets provided some space. “The promise has been fulfilled,” the statement said.
“Providing relief to the people is among my top priorities,” the prime minister was quoted as saying.
The PMO said the federal government had continued providing relief to consumers despite difficult economic conditions by extending subsidies for public and goods transport, as well as to motorcyclists and rickshaw drivers.
It added that Pakistan had maintained uninterrupted fuel supplies despite regional turmoil, while other countries faced shortages and supply disruptions.
The government has been revising petroleum prices every Friday night following the now-paused US-Israeli war on Iran, which began on Feb 28 and created an international energy crisis.
Just before the outbreak of the conflict, petrol and diesel in Pakistan were priced at around Rs266 and Rs281 per litre, respectively.
The government is closely monitoring petroleum prices as they directly affect transportation costs, electricity generation and inflation, often influencing the prices of goods and services across the economy.
Despite the IMF condition of restoring an average petroleum levy of Rs80 per litre on both major products having been achieved a fortnight ago, the government passed on partial benefit of the drop in global prices to the domestic market.
The petroleum levy on HSD was increased to about Rs67 per litre, while it was kept unchanged at around Rs103 per litre on petrol.
The government is currently charging about Rs100 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 Rs125 per litre, including petroleum levy, customs duty and the 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 monthly sales of about 700,000 to 800,000 tonnes compared to just 10,000 tonnes of monthly demand for kerosene.
Global oil prices
Brent crude futures for July, which expire later on Friday, were down $1.89, or 2pc, at $91.82 a barrel by 1309 GMT. The more active August contract was down $1.89, or 2pc, at $90.81. WTI US oil futures were down $1.70, or 1.9pc, at $87.20.
The Brent benchmark has plunged by about 11pc this week for its steepest weekly decline in seven. WTI, meanwhile, has dropped by nearly 10pc for its biggest weekly loss in six. Both benchmarks hit their lowest price since mid-April.
“While oil flows through the Strait of Hormuz remain restricted and oil inventories keep falling, the market focus remains on the possibility of a deal between the US and Iran,” said UBS analyst Giovanni Staunovo. “The price drop could be forcing some market players to close their long positions.”
With input from Reuters
Published in Dawn, May 30th, 2026