ISLAMABAD:
The government on Friday reduced the prices of petrol and diesel by up to Rs 6.80 per liter for the next fortnight starting May 23.
This is the second week that consumers have benefited from a reduction in diesel and gasoline prices at high speed.
Even after the further reduction, prices of petrol and high-speed diesel remained above Rs 400 per litre.
The Petroleum Division of the Ministry of Energy announced a reduction in ex-depot oil prices for the next review period starting May 23, 2026.
According to the official notification issued by the government, the price of high speed diesel (HSD) has been reduced by Rs 6.80 per liter to Rs 402.78 from the previous price of Rs 409.58.
The government has also reduced the price of Motor Spirit, commonly known as petrol, by Rs 6.00 per liter. The new price of petrol has been fixed at Rs403.78 per liter against the previous rate of Rs409.78.
The revised rates will take effect from May 23, 2026. They will remain applicable until the next rate revision.
The government had also reduced the price of petrol and diesel by Rs 5 per liter in the previous week.
High-speed diesel is widely used in transportation and agriculture sectors. The planting season is underway and therefore the reduction in its prices will have a positive impact on the agricultural sector where input costs were already high.
The price of fertilizers had already increased due to increased transportation costs.
Gasoline is used by motorcycles and cars. It is also an alternative to CNG, but Punjab did not have local gas for CNG outlets and hence the demand for petrol increased.
After facing a depression, the United Arab Emirates (UAE) left OPEC, a cartel of oil producers. During the Iran-US War, Iran and the United States maintained a blockade of the Strait of Hormuz, which supplies 20 percent of the world’s oil.
Pakistan has received an oil cargo ship from Kuwait to overcome the oil shortage crisis in the country, amid impasse in peace talks between Iran and the United States. However, there were reports that two countries were close to reaching a deal.
Meanwhile, the Oil and Gas Regulatory Authority (OGRA) notified a sharp increase of up to 28 percent in liquefied natural gas prices for the month of May, marking a significant upward revision in energy costs for consumers and distribution companies.
According to an official notification issued by OGRA, LNG prices for Sui Southern Gas Company (SSGC) have been increased by $3.51 per MMBtu, bringing the new price to $16.04 per MMBtu. Similarly, for the Sui Northern Gas Pipelines Limited (SNGPL) system, LNG became more expensive by $3.43 per MMBtu, with the revised price now set at $16.98 per MMBtu.
Sources said the pricing determination for May was unusually delayed due to late decision-making by the regulator, leading to a significant delay in finalizing the pricing structure for the month.
