ISLAMABAD – Inflation-hit masses get little breathing space earlier this week when the government reduced petrol and diesel prices by Rs6-7 per litre with immediate effect for week ending May 29, amid tweaks in global oil prices.
The government however maintained its overall revenue target while reshaping petroleum levy rates in the latest weekly fuel price review, effective May 23, 2026, triggering sharp shifts in petrol and diesel pricing components.
After latest revision in fuel prices, petroleum levy on petrol has been reduced by Rs 6 per litre, bringing it down from Rs 108.17 to Rs 102.17 per litre, while Diesel has been increased by Rs15.40 per litre, jumping from Rs 42.60 to Rs 58 per litre. Climate Support Levy, however, remains unchanged at Rs 2.50 per litre for both fuels.
Fuel Levy
| Component | Petrol | Diesel |
| Previous Levy | 108.17 | 42.60 |
| New Levy | 102.17 | 58.00 |
Fixed Levy
| Levy Type | Petrol | HSD |
| Climate Support Levy | 2.50 | 2.50 |
Petrol, Diesel Price in Pakistan
| Item | Petrol | Diesel |
| New Ex-depot Price | 403.78 | 402.78 |
| Previous Price | 409.78 | 409.58 |
| Reduction | -6.00 | -6.80 |
| Percentage Change | 1.2% decrease | 1.2% decrease |
Fuel prices continue to hover at elevated levels. The government has set the new consumer price of petrol at Rs 403.78 per litre and HSD at Rs 402.78 per litre, keeping both fuels firmly above the Rs400 mark.
On the supply side, the ex-refinery price of High-Speed Diesel has dropped to Rs 322.28 per litre from Rs 337.51, reflecting a decrease in base cost. Petrol, however, has seen a slight increase in its ex-refinery price, rising to Rs 277.06 per litre from Rs 275.04.
Meanwhile, changes in logistics and distribution margins also added to the mix. Inland Freight Equalisation Margin (IFEM) for diesel has increased to Rs 3.49 per litre from Rs 1.06, while petrol’s IFEM has been reduced to Rs 5.54 per litre from Rs 7.56.
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