Pakistan Slashes Petrol, Diesel Prices by PKR 5 Per Litre

Reduction brings some relief to consumers after weeks of sharp hikes

The Pakistan government announced a cut in petroleum prices early Saturday, reducing petrol and high-speed diesel by PKR 5 per litre. The new rates took effect from May 16.

Petrol will now cost PKR 409.78 per litre, while high-speed diesel (HSD) is priced at PKR 409.58 per litre. The adjustment follows weeks of relentless price increases that had squeezed household budgets across the country.

Relief After Weeks

The reduction, though modest, comes as a breather for millions of Pakistanis who rely on fuel for daily commuting and livelihoods. Motorcyclists, rickshaw drivers, and small vehicle owners—sections most vulnerable to price fluctuations—are expected to benefit directly.

Just seven days earlier, the government had raised petrol prices by PKR 14.92 and diesel by PKR 15 per litre. That hike had triggered concerns about cascading inflation across essential goods.

Islamabad Protest Precedes Cut

A protest rally unfolded in Islamabad on May 15, with demonstrators demanding immediate relief from soaring fuel costs. Footage from the capital showed crowds gathered at key intersections, though the protest remained largely peaceful.

Sources familiar with the matter said the timing of the price cut—less than 24 hours after the rally—may reflect growing political pressure on the administration.

Weekly Review Mechanism

The Pakistan government has been reviewing petroleum prices every Friday night, a practice adopted to align domestic rates with global market movements. The ongoing fuel crisis has deepened since the America-Israel and Iran conflict that began on February 28. While fighting is currently paused, crude oil volatility continues to impact import-dependent nations like Pakistan.

On March 6, shortly after the war erupted, the government raised petrol and diesel prices by PKR 55 per litre in a single stroke. Further increases followed on April 2, with petrol becoming 43 per cent costlier and high-speed diesel jumping 55 per cent.

India Sees Opposite Trend

In a contrasting move, petrol and diesel became more expensive across the border. On May 15, Indian state-run oil marketing companies hiked fuel prices by ₹3 per litre. In Delhi, petrol now sells at ₹97.77 per litre and diesel at ₹90.67 per litre.

Compressed natural gas (CNG) also saw an increase of up to ₹2 per kilogram in major Indian cities. Delhi residents now pay ₹79.09 per kg of CNG.

What's Driving Prices

The primary factor behind price volatility remains crude oil's trajectory in international markets. Before the Iran conflict erupted, crude traded around $70 per barrel. That figure has since crossed the $100 mark, putting enormous pressure on oil marketing companies.

Industry observers note that if crude prices remain elevated for an extended period, consumers on both sides of the border may face further increases in the weeks ahead.