Pakistan reduced the price of petrol by PKR 4 per liter and high-speed diesel by PKR 2 per liter on Friday, marking the latest in a series of fuel price cuts as global oil prices slide on US-Iran peace prospects.
The new rates take effect on June 13.
How much have petrol and diesel prices been cut in Pakistan?
According to the Petroleum Division, petrol will sell at PKR 373.78 per liter, down PKR 4, and high-speed diesel at PKR 378.78 per liter, down PKR 2.
This is the fifth consecutive cut, as global oil prices ease on signs of a US-Iran peace deal that could reopen the Strait of Hormuz.
The reductions have come on the back of lower oil prices as the U.S. and Iran move closer to a peace agreement to end their conflict which has hampered global oil supplies.
Brent crude has slid toward $88 per barrel, its lowest level in nearly two months, on signals that a US-Iran peace deal could come within days.
President Donald Trump has delayed planned military strikes and said an agreement with Iran could be reached as early as this weekend.
He said any agreement would reopen shipping through the Strait of Hormuz and include Iranian commitments to forgo developing nuclear weapons.
Iran's semi-official Fars news agency reported Tehran was likely to accept the deal, though no final text has been approved.
Pakistan imports the bulk of its fuel and is particularly vulnerable to fluctuations in global oil markets.
Petrol and diesel prices hit record levels after the closure of the Strait of Hormuz disrupted supplies. On April 3, petrol reached PKR 458.47 per liter and diesel PKR 520.35.
Those were the highest-ever for petrol and the second-highest for diesel. Higher fuel costs pushed Pakistan's inflation to 10.9% in April, the first double-digit reading in 20 months.
How did Pakistan's fuel sales perform in May?
Higher prices also weighed on local demand for petroleum products. Pakistan's refinery product sales fell 7% year-on-year in May 2026.
High-speed diesel offtake declined 19.1% to 409,000 tons in May. Industry analysts cited weaker demand from oil marketing companies and rising cross-border smuggling.
How does the PDL affect fuel prices?
Fuel prices in Pakistan are shaped by global crude rates and the government's tax structure. The Petroleum Development Levy (PDL) is a fixed amount per liter charged on petroleum products.
The PDL is a key source of non-tax revenue for the federal government. Unlike sales tax, it is not shared with provinces under the National Finance Commission Award.
Total petroleum levy collections reached PKR 1.33 trillion from July through April of the current fiscal year. The full FY26 collection target stands at PKR 1.47 trillion.
For FY27, the IMF has proposed raising the PDL target by 18% to PKR 1.73 trillion. The petroleum levy could rise to PKR 100 per liter under the proposal.
That means future fuel price cuts may be limited even if global oil prices keep falling.
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