- Petrol price fell from Rs 299.50 to Rs 297.53 per litre.
- Diesel price reduced from Rs 311.47. to Rs.309.50. per litres.
- New fuel prices will come into effect immediately after the announcement.
The federal government has announced a fresh cut in fuel prices, slashing the prices of both petrol and diesel by Rs1.97 per liter with immediate effect.
After the weekly review, petrol will now sell at Rs297.53 per litre, down from Rs299.50, while diesel has been brought down to Rs309.50 per liter from the previous level of Rs311.47, according to a release issued by the Petroleum Division late on Friday.
The cut marks the first change in retail fuel prices since June 19, when the government cut petrol and diesel prices by Rs74 and Rs67 per litre, respectively, in what was one of the steepest reductions in recent years.
This relief, announced by Prime Minister Shehbaz Sharif, came against the backdrop of 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, the closure of which had previously sparked fears of a supply shortage.
Prices had since remained stable through two consecutive weekly reviews, even as the government quietly recalibrated the tax structure that underpins fuel costs.
The fee structure is revised again
Alongside the price review, the government has also adjusted the oil tax on both fuels.
The tax on petrol has been increased by Rs 6.22. per litre, which has taken it from Rs 64.14. to Rs.70.36.
Petroleum tax on kerosene remains unchanged at Rs20.36 per litre.
A separate notification confirming the revised oil duty was issued along with the price notification.
Petroleum price increased
In a separate move, the Oil and Gas Regulatory Authority (OGRA) has hiked the price of kerosene by Rs4.09 per litre, taking it to Rs231.14 from the earlier rate of Rs227.05. The increase, announced by OGRA, has come into effect from today.
On July 2, the Petroleum Division doubled the climate support tax on petrol and diesel from Rs2.50 to Rs5 per litre, while trimming the kerosene tax by the same margin – a move designed to keep retail prices unchanged for consumers despite the shift in how the taxes were distributed.
This week’s reduction, while relatively modest, offers some further relief to households and businesses still adjusting to the sharp price swings seen over the past fortnight. Petrol remains the fuel of choice for commuters using motorbikes, rickshaws and smaller vehicles, meaning any downward movement will be felt most directly by middle- and low-income households who rely on it for daily travel.
Diesel, meanwhile, continues to carry disproportionate weight in Pakistan’s inflation dynamics due to its dominant use in the transport and agriculture sectors – from heavy trucks and buses to tube wells, tractors and threshers. A cheaper diesel price, even by a fraction, typically adds to freight and farm costs over time.
The government is expected to review fuel prices again in the coming week, in line with its usual schedule, with any further movement likely to depend on the course of international crude oil prices and the rupee’s performance against the dollar.
