People on their motorcycles wait their turn to get fuel at a gas station, hours before fuel prices increase in Pakistan, amid the US-Israel conflict with Iran, in Karachi, Pakistan, on April 30, 2026. Photo taken with a mobile phone. REUTERS
The federal government on Friday reduced the prices of petrol and high speed diesel (HSD) by Rs 1.97 per liter for the next week, according to a notification issued by the Ministry of Petroleum.
As per the revised rates, the price of petrol has been fixed at Rs 297.53 per litre, while HSD will now cost Rs 309.50 per litre.
The new prices took effect at midnight and will remain applicable for the next week, according to the notification.
The announcement came a week after the government decided to keep gasoline and diesel prices unchanged despite the continued decline in international oil prices.
Following that decision, Oil Minister Ali Pervaiz Malik rejected the impression that the government was favoring any particular sector and said the public was likely to receive “good news” in the coming days.
Read: Freezing oil prices provokes violent reactions
He said Prime Minister Shehbaz Sharif’s top priority was to protect consumer rights, adding that a high-level committee had been constituted on the Prime Minister’s directives to ensure transparency in oil prices and positive developments were expected soon.
The minister said the government was closely monitoring trends in the international oil market and urged the public to review Platts’ international prices for petrol and diesel, maintaining that pricing decisions were being made on a fair and transparent basis.
It later emerged that to keep oil prices unchanged, the federal government had revised the tax structure on petroleum products at the start of the new financial year by increasing the Climate Support Tax on petrol and HSD, while reducing the Petroleum Tax by an equivalent amount.
According to a notification issued by the Ministry of Power on July 1, the climate support tax on petrol and HSD has been increased from Rs 2.50 per liter to Rs 5 per litre.
At the same time, the petroleum tax levied on petrol sold through retail outlets was reduced by Rs 2.50 per liter to Rs 64.14 per litre, while the tax on HSD was reduced by Rs 2.50 per liter to Rs 77.04 per litre.
