Government Cuts Petrol and Diesel Prices Under Revised Fuel Pricing Mechanism
The federal government has reduced the price of petrol by Rs4.08 per litre and lowered the price of high-speed diesel (HSD) by Rs2.45 per litre, with the revised rates taking effect from August 4, 2026.
According to a notification issued by the Ministry of Energy (Petroleum Division), the Oil and Gas Regulatory Authority (OGRA) revised the ex-depot prices of petroleum products under the government’s updated fuel pricing mechanism.
New Petrol and Diesel Prices Effective August 4
Under the latest revision, the price of Motor Spirit (MS), commonly known as petrol, has been reduced from Rs336.03 per litre to Rs331.95 per litre.
Meanwhile, the price of high-speed diesel (HSD) has been cut from Rs392.38 per litre to Rs389.93 per litre.
The revised prices will remain in force until the next official review.
Revised Fuel Prices
| Product | Price on August 1 (Rs/litre) | Price on August 4 (Rs/litre) | Change |
|---|---|---|---|
| Motor Spirit (MS) | 336.03 | 331.95 | -4.08 |
| High-Speed Diesel (HSD) | 392.38 | 389.93 | -2.45 |
Second Fuel Price Reduction Within Days
The latest announcement follows the previous fuel price revision on August 1, when the government reduced petrol prices by Re0.12 per litre and lowered high-speed diesel prices by Re0.66 per litre.
The consecutive reductions reflect the government’s revised petroleum pricing mechanism, under which domestic fuel prices are adjusted more frequently in line with international oil prices, exchange rate movements and other pricing components.
Lower Fuel Prices Expected to Ease Cost Pressures
Petrol is primarily used by motorcycles, passenger cars and other light vehicles, making it the most widely consumed transportation fuel in Pakistan.
High-speed diesel is mainly used by heavy transport vehicles, the agriculture sector and industries, meaning changes in HSD prices directly influence freight costs, agricultural operations and industrial production expenses.
The latest reduction is expected to provide some relief to consumers and businesses by lowering transportation costs and helping ease inflationary pressures, although the overall impact will depend on future movements in global oil markets and the exchange rate.