ISLAMABAD:
The government on Friday cut petrol and diesel prices by up to Rs 6.80 per liter for the next fortnight with effect from May 23.
It is the second week consumers have enjoyed price drops on high-speed diesel and petrol.
Even after the new reduction, petrol and high-speed diesel prices were still above Rs 400 per litre.
The Ministry of Energy’s Petroleum Division announced a reduction in oil prices from previous depots for the next review period beginning on May 23, 2026.
According to the official notification issued by the government, the price of High Speed Diesel (HSD) was cut by Rs6.80 per liter to Rs402.78 against the previous price of Rs409.58 earlier.
The government also reduced the price of Motor Spirit, commonly known as petrol, by Rs6.00 per litre. The new price of petrol has been fixed at Rs 403.78 per liter against the earlier rate of Rs 409.78.
The revised prices will come into force on 23 May 2026. They will remain in effect until the next price review.
The government had also reduced the price of petrol and diesel by Rs 5 per liter during the previous week.
The high-speed diesel is widely used in the transport and agricultural sectors. The crop sowing season is underway and hence the drop in prices will have a positive impact on the agriculture sector where input costs were already high.
The price of fertilizer had already increased due to an increase in transport costs.
Gasoline is used by motorcycles and cars. It is also an alternative to CNG but Punjab did not have indigenous gas for CNG outlet and hence the demand for the petrol had increased.
After facing a depression, the United Arab Emirates (UAE) had left OPEC, a cartel of oil producers. During the Iran-American War, Iran and the United States had maintained a blockade of the Strait of Hormuz, which supplies 20 percent of global oil to the world.
Pakistan had received cargo oil ship from Kuwait to overcome the oil shortage crisis in the country amid deadlock in peace talks between Iran and the United States (US). However, there were reports that two countries were closing in on a deal.
Meanwhile, the Oil and Gas Regulatory Authority (OGRA) has announced a sharp increase of up to 28 percent in liquefied natural gas prices for the month of May, marking a significant upward adjustment in energy costs for consumers and distribution companies.
According to an official notification issued by OGRA, the LNG prices of Sui Southern Gas Company (SSGC) have been increased by $3.51 per cubic meter. MMBtu, bringing the new price to $16.04 per MMBtu. Similarly, LNG for the Sui Northern Gas Pipelines Limited (SNGPL) system has become more expensive by $3.43 per barrel. MMBtu, with the revised price now set at $16.98 per MMBtu.
Sources indicated that the fixing of maize prices was unusually delayed due to late decision-making by the regulator, resulting in a significant delay in finalizing the price structure for the month.
