Petrol, HSD prices cut by Rs22 per litre each

ISLAMABAD: In a major relief to consumers, the government has announced a 5.5 percent reduction in the prices of petrol and High-Speed Diesel (HSD), cutting both by Rs22 per litre. The decision, managed within the country’s petroleum levy budgetary targets, comes on the back of falling international crude prices and a strengthening Pakistani rupee. Effective May 30, the new price of petrol will drop to Rs381.78 per litre (down from Rs403.78), while HSD will decrease to Rs380.78 per litre (down from Rs402.78). According to a statement issued by the Prime Minister’s Office (PMO) on Friday states, Prime Minister Shehbaz Sharif fulfilled his promise to pass on economic relief to the public as soon as fiscal space allowed. READ MORE: Govt cuts petrol price by Rs6, diesel by Rs6.80 per litre The price cut mirrors a sharp downturn in global oil benchmarks on May 29, driven by easing geopolitical tensions in the US-Iran conflict. Arab Light fell by 3.7%, while Brent crude dropped 5.5 percent to settle at USD92.76 per barrel. Concurrently, weekly domestic oil production saw a 1 percent uptick, reaching 70,924 barrels oil per day (bopd). On the domestic front, the decision was further supported by currency stability and robust fiscal cushions. Since the onset of the US-Iran conflict, the Pakistani rupee has appreciated by 0.6 percent against the US dollar. Additionally, the country’s foreign exchange reserves have climbed to a 53-month high of USD17.0 billion. Market experts noted that the substantial price cut was also a strategic move to protect local demand. Analysts highlighted that maintaining higher fuel prices risks dampening domestic consumption and incentivizing illicit fuel smuggling, particularly across border regions. Oil marketing companies (OMCs) failed to uplift petrol and high-speed diesel from local refineries in line with commitments made during the Product Review Meeting (PRM) for May. . Official supply data up to May 17 showed petrol upliftment at 330,181 metric tonnes against a prorated demand target of 357,274 tonnes, leaving a shortfall of 25,146 tonnes, or 8 percent. High-speed diesel (HSD) upliftment stood at 281,092 tonnes against a prorated target of 366,981 tonnes, reflecting a deficit of 83,174 tonnes, or 23 percent. Sources said that the petroleum levy rate on petrol has been reduced by Rs 10.83 per litre from Rs 102.17 to Rs 91.34 per litre, whereas the levy on HSD has been increased by Rs 10.93 per litre from Rs 58 to Rs 68.93 per litre. The PL on kerosene oil stables at Rs 20.36 per litre. Kerosene oil has been reduced by Rs 41.44 per litre. The new price of kerosene oil has been set at Rs 272 per litre from Rs 313.44 per litre. Copyright Business Recorder, 2026

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