The federal government has announced a reduction of Rs4 per litre in the price of petrol, while keeping the price of high-speed diesel (HSD) unchanged for the week ending June 12, 2026.Following the revision, the ex-depot price of petrol has decreased from Rs381.78 to Rs377.79 per litre.Meanwhile, HSD will continue to be sold at Rs380.78 per litre.According to the report, the adjustment reflects movements in international oil prices during the past week.The government also modified taxes and levies to prevent any change in diesel prices.Diesel is considered one of the most inflation-sensitive fuels in Pakistan because it is widely used in freight transport and commercial activities.Despite remaining unchanged this week, diesel prices have fallen significantly from their peak level of Rs520.35 per litre recorded in April.The latest cut marks the fourth consecutive weekly reduction in petrol prices.Combined with previous adjustments, petrol prices have declined by around Rs37 per litre over recent weeks.Just a week earlier, the government had reduced both petrol and diesel prices by Rs22 per litre.The report highlights that fuel taxation remains substantial.The government currently collects roughly Rs125 per litre on petrol through petroleum levy, customs duty, climate support levy and related charges.On diesel, the total burden of duties and levies is approximately Rs100 per litre.Additional petroleum levies are also charged on kerosene and light diesel oil.

Petrol and diesel continue to be major sources of government revenue, with monthly sales ranging between 700,000 and 800,000 tonnes, far exceeding the demand for kerosene.The latest decision is expected to provide some relief to consumers, although fuel taxes remain a significant component of retail prices.