The Petroleum Division has announced a reduction in fuel prices for the coming week, lowering the rates of both petrol and high-speed diesel (HSD) by ₨5 per litre amid continued volatility in global oil markets.
According to an official notification issued on Friday, the revised prices came into effect from May 16, 2026. Following the latest cut:
- Petrol price has been reduced to ₨409.78 per litre
- High-Speed Diesel (HSD) price now stands at ₨409.58 per litre
The reduction comes just one week after the government sharply increased fuel prices, when petrol rose by ₨14.92 per litre and HSD by ₨15 per litre, placing additional pressure on consumers already struggling with inflation.
The government has been conducting weekly petroleum price reviews since the escalation of tensions involving the United States, Israel, and Iran earlier this year. The conflict intensified global concerns over energy supplies after disruptions around the strategically vital Strait of Hormuz, through which nearly one-fifth of the world’s oil and gas shipments normally pass.
Global oil prices continued climbing on Friday as renewed geopolitical tensions weakened hopes for stability in the region. Markets reacted strongly after comments from US President Donald Trump and Iran’s foreign minister further raised concerns about ongoing attacks and seizures involving commercial shipping near the Strait of Hormuz.
As a result:
- Brent crude futures jumped $3.35, or 3.17%, reaching $109.07 per barrel
- US West Texas Intermediate (WTI) crude increased $3.85, or 3.81%, to $105.02 per barrel
Over the course of the week, Brent crude has risen by nearly 7.72%, while WTI has surged more than 10.11%, largely driven by uncertainty surrounding the fragile ceasefire linked to the Iran conflict.
Fuel prices remain a highly sensitive issue in Pakistan because of their direct impact on inflation and household expenses. Petrol is primarily used by owners of motorcycles, small cars, rickshaws, and other personal transport vehicles. Any increase in petrol prices significantly affects middle-class and lower-middle-class families who rely on daily commuting for work and education.
Meanwhile, the price of high-speed diesel is considered especially inflationary because it powers much of Pakistan’s transport and agricultural sectors. Trucks, buses, trains, tractors, tube wells, and threshers all depend heavily on diesel fuel. Rising HSD prices often lead to higher transportation costs, which eventually increase the prices of vegetables, food items, and other essential goods across the country.
Although the latest reduction offers temporary relief to consumers, analysts warn that continued instability in international oil markets could lead to further fluctuations in petroleum prices in the weeks ahead.
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