Govt Reduces Petrol and Diesel Prices by Rs22 Per Litre

The federal government has announced a major reduction in fuel prices, cutting both petrol and diesel rates by Rs22 per litre. The decision was announced on Friday and, according to the Prime Minister's Office, was taken to provide direct relief to the public.

After the latest reduction, the new price of petrol has been set at Rs381.78 per litre. High-speed diesel will now be available at Rs380.78 per litre.

New Petrol and Diesel Prices in Pakistan (29 May 2026)

The government said the decision reflects Prime Minister Shehbaz Sharif's earlier commitment to pass relief on to citizens whenever financial space becomes available.

PM Shehbaz Sharif Says Public Relief Is Top Priority

Prime Minister Shehbaz Sharif said that providing relief to the people remains one of his top priorities.

According to the PMO statement, the government continued supporting citizens despite difficult economic conditions. It also offered fuel-related relief for users of public transport, goods transport, motorcycles, and rickshaws.

In many cases, even a small drop in fuel prices can affect household budgets. Transport fares, delivery costs, and daily commuting expenses are all linked to petrol and diesel rates.

Previous Fuel Price Cut in Pakistan

This is not the first fuel price reduction announced recently. Last week, the government had already reduced petrol prices by Rs6 per litre. Diesel prices were also cut by Rs6.80 per litre in the previous adjustment.

With the latest reduction, fuel users have received another round of relief.

Why Fuel Prices Matter for the Public

Fuel prices directly affect the cost of daily life in Pakistan. When petrol and diesel become expensive, transporters often increase fares and businesses face higher delivery costs.

From experience, the impact is usually felt quickly by middle-income families, students, office workers, and small business owners.

Lower fuel prices can help in:

• Reducing daily travel costs
• Lowering transport expenses
• Supporting goods movement
• Easing pressure on small businesses
• Giving some relief to motorcycle and rickshaw users

International Oil Prices Also Decline

The latest local fuel price cut comes as international oil prices also moved lower. Oil futures dropped around 2% on Friday, while both Brent and WTI benchmarks were heading toward their sharpest weekly decline in several weeks.

Brent crude fell to around $91.82 per barrel, while WTI crude dropped to nearly $87.20 per barrel. Global oil prices were affected by reports related to a possible ceasefire extension between the United States and Iran.

Govt Highlights Fuel Subsidy Measures

The PMO said that during difficult global market conditions, the government had worked to prevent major fuel price shocks for the public. It added that fuel subsidies worth more than Rs130 had been provided in the past to protect citizens from rising international oil prices.

One common mistake people make is assuming local fuel prices depend only on global oil rates. In reality, exchange rates, taxes, duties, subsidies, and government policy also play a major role.

Final Words

The Rs22 per litre reduction in petrol and diesel prices is a significant relief measure for the public. With petrol now priced at Rs381.78 per litre and diesel at Rs380.78 per litre, many households and transport users may feel some easing in daily expenses.

However, the real impact will depend on whether transport fares and goods prices also adjust in line with the latest fuel price cut.