The federal government has reduced petrol and High-Speed Diesel (HSD) prices following a decline in global oil rates after US President Donald Trump called off a planned military strike on Iran and announced that negotiations are taking place.
The price of petrol dropped by Rs4.08 per litre, while HSD decreased by Rs2.45 per litre. Petrol now retails at Rs331.95 per litre, while HSD costs Rs389.93 per litre. The government retains taxes and duties worth Rs110 per litre on petrol and Rs96 per litre on diesel.
A notification issued by the Petroleum Division confirmed that the updated rates take effect on August 4.
Fuel prices previously reached historic highs during the Middle East conflict. HSD peaked at Rs520.35 per litre on April 3, rising from Rs281 per litre after hostilities began on February 28. Petrol reached a peak of Rs458.41 per litre on April 3, up from Rs266 per litre in early March.
Petroleum Minister Ali Pervaiz Malik had previously announced that the state will revise fuel costs on a daily basis to adjust to international market shifts. The administration implemented weekly price updates starting in March alongside fuel conservation strategies and targeted subsidy programs in April.
“The cabinet and the prime minister decided to give the Oil and Gas Regulatory Authority the responsibility of deciding fuel prices on a daily basis based on international market trends,” Malik stated.
Price revisions directly influence economic conditions across various sectors. Lower-middle and middle-class populations face direct exposure to petrol rate shifts due to reliance on private vehicles, small cars, two-wheelers, and rickshaws. Diesel price adjustments affect transport costs, agricultural machinery, heavy generators, and power generation units.
Monthly national sales for petrol and HSD range between 700,000 and 800,000 tonnes, generating the main share of petroleum revenue compared to kerosene demand of 10,000 tonnes per month.
