ISLAMABAD — The federal government on Friday announced a modest reduction in petrol prices while raising the rate of High-Speed Diesel (HSD), reflecting continued fluctuations in global crude markets due to the ongoing Middle East conflict.
According to the revised pricing notification issued by the Petroleum Division, petrol has been cut by Re1 per litre, while HSD has increased by Rs3.77 per litre. The new rates will take effect on Tuesday, July 28, 2026.
The government has announced a new adjustment in petroleum prices, bringing mixed news for consumers across Pakistan. According to the latest notification, diesel prices have been increased by Rs3.37 per litre, raising the new price to Rs386.83 per litre.
Meanwhile, petrol… pic.twitter.com/R02fNTMDoV
— The Public Purview (TPP) (@publicpurviewpk) July 28, 2026
Breakdown of Revised Fuel Rates and Tax Structure
After the adjustment, petrol will now retail at Rs334.18 per litre, and HSD at Rs386.83 per litre. Both fuels continue to carry significant federal taxes to help meet revenue targets.
| Petroleum Product | New Price (per Litre) | Price Change | Federal Taxes & Duties Charged |
|---|---|---|---|
| Motor Gasoline (Petrol) | Rs334.18 | Decreased by Re1.00 | Rs110.00 per litre |
| High-Speed Diesel (HSD) | Rs386.83 | Increased by Rs3.77 | Rs96.00 per litre |
Market Dynamics & Shift to Daily Pricing Mechanics
The latest revision comes as domestic prices ease from the record highs seen earlier this year, when petrol peaked at Rs458.41 and HSD reached Rs520.35 on April 3 amid the US-Iran conflict and supply disruptions in the Persian Gulf.
Petroleum Minister Ali Pervaiz Malik confirmed that the federal cabinet and Prime Minister Shehbaz Sharif have authorised the Oil and Gas Regulatory Authority (OGRA) to move to a daily pricing mechanism based on real-time global market trends.
“The cabinet and prime minister have decided to give OGRA the responsibility of deciding fuel prices on a daily basis based on international market trends.”
— Ali Pervaiz Malik, Federal Minister for Petroleum
The shift to daily pricing has faced criticism from the All Pakistan Dealers Association, which has signalled plans to consider protest action over operational difficulties.
Socio-Economic Impact
The mixed price movement is expected to affect different segments of society in distinct ways:
- Petrol Adjustment: Provides some relief to commuters, middle- and lower-middle-class households that rely on motorcycles, rickshaws, and small private vehicles.
- Diesel Increase: Likely to push up transportation costs and contribute to food inflation, as HSD powers heavy freight trucks, public buses, agricultural machinery, and industrial generators.
Petrol and diesel together account for the bulk of Pakistan’s petroleum consumption, with combined monthly sales averaging between 700,000 and 800,000 tonnes.
