ISLAMABAD:
The government on Friday cut petrol and diesel prices by up to Rs 6.80 per liter for the next fortnight starting May 23.
This is the second week that consumers have enjoyed a reduction in diesel and high-speed gasoline prices.
Even after the fresh reduction, petrol and high-speed diesel prices remained above Rs 400 per litre.
The Petroleum Division of the Ministry of Energy announced a cut in depot oil prices for the next review period starting May 23, 2026.
As per the official notification issued by the government, the price of High Speed Diesel (HSD) has been slashed by Rs 6.80 per liter to Rs 402.78 from the previous price of Rs 409.58.
The government also reduced the price of Motor Spirit, commonly known as petrol, by Rs 6.00 per litre. The new price of petrol has been fixed at Rs 403.78 per litre, as against the previous price of Rs 409.78.
The revised prices will take effect from May 23, 2026. They will remain applicable until the next price revision.
The government had also reduced the price of petrol and diesel by Rs 5 per liter during the previous week.
High-speed diesel is widely used in the transportation and agriculture sectors. The crop planting season is underway and therefore the reduction in their prices will have a positive impact on the agricultural sector where input costs were already high.
The price of fertilizers had already risen due to rising transportation costs.
Gasoline is used by motorcycles and cars. It is also an alternative to CNG but Punjab did not have indigenous gas for CNG outlets and hence the demand for petrol had increased.
After facing a depression, the United Arab Emirates (UAE) had exited OPEC, a cartel of oil producers. During the Iran-US War, Iran and the US maintained a blockade of the Strait of Hormuz, which supplies 20 percent of the world’s oil to the world.
Pakistan had received an oil cargo ship from Kuwait to overcome the oil shortage crisis in the country amid a deadlock in peace talks between Iran and the United States (US). However, there were reports that two countries were close to closing a deal.
Meanwhile, the Oil and Gas Regulatory Authority (OGRA) has reported a sharp increase of up to 28 per cent in liquefied natural gas prices for the month of May, marking a major upward revision in energy costs for consumers and distribution companies.
According to an official notification issued by OGRA, LNG prices for Sui Southern Gas Company (SSGC) have been increased by $3.51 per MMBtu, taking the new price to $16.04 per MMBtu. Similarly, for the Sui Northern Gas Pipelines Limited (SNGPL) system, LNG has become more expensive by $3.43 per MMBtu, with the revised price now set at $16.98 per MMBtu.
Sources indicated that the determination of May prices was unusually delayed due to late decision-making by the regulatory authority, resulting in a significant delay in finalizing the pricing structure for the month.
