- Petrol price was reduced from Rs 299.50 to Rs 297.53 per litre.
- The price of diesel was reduced from Rs 311.47 to Rs 309.50 per litre.
- The new fuel prices take effect immediately upon notification.
The federal government has announced a further reduction in fuel prices, reducing petrol and diesel prices by Rs 1.97 per liter with immediate effect.
After the weekly revision, petrol will now be sold at Rs 297.53 per liter, down from Rs 299.50, while diesel has been reduced to Rs 309.50 per liter from its previous level of Rs 311.47, according to a notification issued by the Petroleum Division on Friday evening.
The cut marks the first change in retail fuel prices since June 19, when the government cut petrol and diesel rates by Rs 74 and Rs 67 per liter respectively, in what was one of the steepest reductions in recent years.
That relief, announced by Prime Minister Shehbaz Sharif, came after a sharp drop in international crude oil prices following the US-Iran peace deal and the reopening of the Strait of Hormuz, a vital corridor for global energy shipments whose closure had previously stoked fears of a supply crisis.
Prices had since held steady for two consecutive weekly reviews, even as the government quietly recalibrated the tax structure underpinning fuel costs.
New revised tax structure
In addition to the price revision, the government has also adjusted the oil tax that applies to both fuels.
The tax on petrol has been increased by Rs 6.22 per liter from Rs 64.14 to Rs 70.36 per litre, while the tax on diesel has been reduced by the same margin from Rs 77.04 to Rs 70.82 per litre.
The petroleum tax on kerosene remains unchanged at Rs 20.36 per litre.
A separate notification confirming the revised petroleum levy was issued along with the price notification.
The price of kerosene rose
In a separate move, the Oil and Gas Regulatory Authority (OGRA) has increased the price of kerosene by Rs 4.09 per litre, taking it to Rs 231.14 from its previous price of Rs 227.05. The increase, notified by OGRA, comes into effect from today.
On July 2, the Petroleum Division doubled the Climate Support Levy on petrol and diesel from Rs 2.50 to Rs 5 per litre, while cutting the Petroleum Levy by the same margin, a move designed to keep retail prices unchanged for consumers despite the change in the way taxes were distributed.
This week’s reduction, although comparatively modest, offers some additional relief to households and businesses still adjusting to the sharp price swings seen over the past fortnight. Gasoline remains the fuel of choice for commuters on motorcycles, rickshaws and smaller vehicles, meaning any downward movement is felt most directly by low- and middle-income households who rely on it for their daily commutes.
Meanwhile, diesel continues to weigh heavily on Pakistan’s inflation dynamics, given its predominant use in the agricultural and transportation sectors, from heavy trucks and buses to tube wells, tractors and threshers. A cheaper diesel rate, even by a fraction, is typically reflected in freight and farming costs over time.
The government is expected to review fuel prices again next week, according to its usual schedule, and any further moves will likely depend on the trajectory of international crude oil prices and the performance of the rupee against the dollar.
