ISLAMABAD — The federal government on Friday announced a reduction of Rs 1.97 per liter in the consumer prices of both petrol and high-speed diesel (HSD). The new pricing structure takes effect immediately for the week ending July 10, 2026, aimed at passing on a fraction of falling international oil prices to local consumers.
Under the updated schedule, the ex-depot price for petrol drops to Rs 297.53 per litre (down from Rs 299.50), while the price for High-Speed Diesel—the country’s primary freight fuel—has been adjusted downward to Rs 309.50 per litre from Rs 311.47.
PDL on petrol raised by 6.22 per litre while cut by the same amount on HSD; Climate Support Levy stays at Rs5, IFEM stands at Rs6.86 for petrol and Rs2.43 for HSD, with OMC margin at Rs7.87, and dealer commission at Rs8.64/litre on both fuels
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Price Corrections Follow War-Driven Peaks
The weekly reduction adds to a series of consecutive downward revisions for retail fuel lines. Petroleum products hit record highs earlier this year following the outbreak of the US-Iran conflict on February 28, which sent global supply chains into shock.
Diesel Rebound: High-speed diesel prices skyrocketed from Rs 281 per litre to an all-time peak of Rs 520.35 on April 3 before entering its current decline. Because HSD powers the bulk of Pakistan’s transport and cargo industry, its reduction is expected to ease overarching inflationary pressures.
Petrol Relief: Petrol prices had similarly crested at Rs 458.41 on April 3, up from a baseline of Rs 266 in early March. With this latest announcement, the cumulative drop for petrol stands at approximately Rs 109 per litre over the past few months.
Fuel Price Adjustments and Taxation Breakdown
The government missed an opportunity for a larger relief drop by increasing the Petroleum Development Levy (PDL). Without the added taxation adjustments, petrol prices would have seen an Rs 11 drop, and diesel would have plunged by Rs 4 per litre.
| Product | Old Price (Rs) | New Retail Price (Rs) | Net Reduction (Rs) | Total Hidden Taxes & Levies Included (per litre) |
| Petrol (Motor Spirit) | 299.50 | 297.53 | 1.97 | Rs 95.00 (Includes Rs 70 PL, Rs 5 Climate Levy, Rs 20 Customs) |
| High-Speed Diesel (HSD) | 311.47 | 309.50 | 1.97 | Rs 101.00 (Includes Rs 80 PL, Rs 5 Climate Levy, Rs 16 Customs + IFEM) |
| Kerosene Oil | — | Retained | — | Rs 21.00 (Petroleum Levy only) |
| Light Diesel Oil (LDO) | — | Retained | — | Rs 16.00 (Petroleum Levy only) |
IMF Compliance and the Climate Support Levy
In strict alignment with International Monetary Fund (IMF) stabilization targets, the government doubled the Climate Support Levy to Rs 5 per litre effective July 1, while making minor parallel reductions in the base petroleum levy.
This complex fiscal re-engineering allows the national treasury to maximize its revenues on Pakistan’s highest-volume fuels. Monthly market consumption for petrol and HSD averages between 700,000 and 800,000 tonnes respectively, dwarfing secondary categories like kerosene, which records a meager 10,000 tonnes in monthly consumption.
