ISLAMABAD: The federal government late last night announced revised prices of petroleum products for the next week, trimming the rates of petrol and high-speed diesel by merely Rs1.97 per litre, even as it sharply increased the petroleum levy on petrol.
According to a press release issued by the Ministry of Energy (Petroleum Division), the ex-depot price of motor spirit (MS) has been reduced to Rs297.53 per litre from Rs299.50, while high-speed diesel (HSD) will now cost Rs309.50 per litre, down from Rs311.47, effective July 4, 2026.
High Speed Diesel (HSD) | 311.47 | 309.50 | -1.97 |
Motor Spirit (MS) | 299.50 | 297.53 | -1.97 |
However, sources in the Finance Division confirmed that the marginal relief to consumers was offset by a significant hike in the petroleum levy on petrol. The levy has been raised by Rs6.22 per litre, taking it from Rs64.14 to Rs70.36 per litre.
In addition, the price of kerosene oil has also been increased by Rs4.09 per litre, sources said, though the official notification did not list kerosene in the latest press release.
It may be mentioned here that the nominal cut of under Rs2 comes despite a sharp retreat in global crude oil benchmarks, which have now fallen back to pre-war levels last seen before February 28.
Energy market analysts note that international prices have eased substantially over the past month, creating fiscal space for a sizeable domestic reduction.
The Shehbaz Sharif-led government has drawn global praise in recent weeks for its diplomatic role in mediating peace efforts in the Middle East, with Islamabad credited for facilitating backchannel talks between the United States and Iran. Yet the government has failed to translate that geopolitical capital — or the global oil price decline — into meaningful relief for domestic consumers.
Officials privy to the pricing decision said the hike in petroleum levy was aimed at meeting revenue targets agreed with the International Monetary Fund, while the increase in climate support levy from July 1 further limited room for a price cut.
Last week, the government had doubled the climate support levy on petrol and diesel from Rs2.50 to Rs5 per litre, while reducing the petroleum levy by an equivalent Rs2.50 — a move that had already kept prices flat.
Consumer groups criticised the latest adjustment as “too little, too late”. “The government is quick to pass on global increases, but when prices fall worldwide, the public gets token reductions,” said Saima Noreen, president of the All Pakistan Consumer Welfare Association.
The Petroleum Division has not yet issued a separate notification for kerosene oil and light diesel oil. The new prices will remain in effect for the next week, with the next review due on July 15.
