ISLAMABAD – Relief for inflation-hit Pakistanis as government announced Rs5 per litre cut in petrol and diesel prices amid ongoing fuel volatility. Finance Division announced notified new petrol and diesel prices effective from May 16, 2026.
According to the official notification, petrol has now been fixed at Rs409.78 per litre, while high-speed diesel (HSD) will cost Rs409.58 per litre.
New Petrol Price in Pakistan
The latest reduction comes just days after a sharp increase, when petrol and diesel prices were raised by nearly Rs15 per litre each last week, adding to continued uncertainty for consumers already struggling with frequent price swings.
| Fuel | Old Price | New Price | Change |
|---|---|---|---|
| Petrol | Rs 414.78 | Rs 409.78 | -Rs 5 |
| Diesel | Rs 414.58 | Rs 409.58 | -Rs 5 |
Fuel prices in Pakistan have been on a turbulent path since March, with petroleum products witnessing five separate increases during this period. At the same time, the government has also reduced prices on three occasions, reflecting an ongoing cycle of sharp adjustments driven by global and domestic pressures.
Before the first major hike in March, petrol was available at Rs255 per litre, highlighting the scale of the cumulative increase over recent months.
According to Reuters, global oil markets also showed renewed volatility, with crude prices rising by more than 3% in a single day. Brent crude reportedly surged past the $109 per barrel mark, further intensifying pressure on energy-importing countries like Pakistan.
The frequent ups and downs in local fuel prices continue to reflect the instability in international oil markets, leaving consumers facing repeated shocks at the pump as authorities adjust rates in response to global trends.
Global Petrol Prices
Global energy markets are witnessing a sharp and alarming upswing as geopolitical tensions in the Middle East continue to escalate, with particular strain linked to disruptions around the Strait of Hormuz — one of the world’s most critical oil shipping routes.
Crude oil benchmarks have surged significantly:
- Brent Crude: $109.26 (+3.35%)
- WTI (US Oil): $105.16 (+3.94%)
- Murban Crude: $107.44 (+2.62%)
This rapid upward movement reflects tightening supply expectations and heightened global uncertainty, pushing fuel markets into a volatile phase.
A worldwide comparison reveals dramatic fuel price inflation, with several nations experiencing record or near-record increases:
- Myanmar: Petrol +89.7%, Diesel +112.7% (one of the highest spikes globally)
- Malaysia: Petrol +56.3%, Diesel +71.2%
- Pakistan: Petrol +54.9%, Diesel +44.9%
- UAE: Petrol +52.4%, Diesel +86.1%
- United States: Petrol +44.5%, Diesel +48.1%
- Philippines: Petrol +40.6%, Diesel +53.8%
- Canada: Petrol +31.9%, Diesel +32.8%
- United Kingdom: Petrol +19.2%, Diesel +34.2%
- India: Petrol +3.2%, Diesel +3.4%
Inside Pakistan, fuel markets are under mounting stress as reports indicate that the Oil and Gas Regulatory Authority (OGRA) is considering a massive increase of up to Rs71 per litre in petrol and diesel prices.
This potential adjustment comes at a time when inflationary pressures are already high, raising concerns of another cost-of-living surge across the country.
Pakistan’s fuel prices over the past year show repeated fluctuations, with a dramatic spike in early 2026:
- May 2025: Rs259.38
- June 2025: Rs259–260
- July 2025: Rs259–266
- August 2025: Rs264.61
- September 2025: Rs260–268
- October 2025: Rs260–265
- November 2025: Rs255–265
- December 2025: Rs253–260
- January 2026: Rs253.17–259
- February 2026: Rs253–258
- March 2026: Rs266.17–321.17 (sudden jump phase)
- April 2026: Rs366.58–458.50 (record peak), later easing to around Rs393.35
Market analysts warn that if OGRA’s proposed adjustments are approved, Pakistan could be heading into another major fuel price shock.
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