Petrol becomes cheaper by Rs1.70 per litre, while a Rs2 increase in the HSD petroleum levy pushes up the diesel price.
ISLAMABAD: The government has reduced the price of petrol by Rs1.70 per litre from August 12, 2026, while increasing the petroleum levy on high-speed diesel (HSD) by Rs2 per litre, resulting in a higher price for diesel.
According to the latest petroleum price calculations, the price of petrol has been reduced from Rs327.62 per litre, effective August 8, to Rs325.92 per litre from August 12.
The reduction follows a decline in the international benchmark for petrol. The Platts Arab Gulf Mean Average fell from $101.71 to $100.82 per barrel during the relevant pricing period.
The petroleum levy on petrol has remained unchanged at Rs80 per litre, while the Climate Support Levy has also stayed at Rs5 per litre. Petrol continues to carry zero sales tax.
HSD levy increased by Rs2 per litre
In contrast, the government has increased the petroleum levy on HSD from Rs74.28 to Rs76.28 per litre, effective August 12.
The increase came despite a slight decline in the international diesel benchmark. The Platts Arab Gulf Mean Average for diesel fell from $146.24 per barrel on August 8 to $145.81 per barrel on August 12.
The underlying price of HSD before the petroleum levy, Climate Support Levy and sales tax also declined, falling from Rs301.58 to Rs300.97 per litre.
However, the Rs2-per-litre increase in the petroleum levy more than offset the reduction in the underlying cost of diesel.
As a result, the total HSD price excluding secondary freight increased from Rs380.86 to Rs382.25 per litre, representing a rise of Rs1.39 per litre.
International prices provide some relief
The latest calculations show that international benchmark prices for both petrol and diesel declined during the pricing period.
For petrol, the cost and freight component fell from $112.58 to $111.69 per barrel, while the rupee-denominated cost declined from Rs196.80 to Rs195.23 per litre.
For HSD, the cost and freight component decreased from $151.34 to $150.91 per barrel. The corresponding rupee-denominated cost fell from Rs264.55 to Rs263.78 per litre.
Despite the decline in the underlying cost of HSD, the increase in the petroleum levy pushed the final diesel price higher.
The pricing documents also show that both petrol and HSD remain exempt from sales tax, with the sales tax component listed at zero for both products.
New prices effective from August 12
The revised petroleum prices will take effect from August 12, 2026, at 00:00 hours.
The petroleum pricing documents state that the full impact of revisions in daily international prices is passed on over seven working days.
The latest adjustment therefore provides some relief to petrol consumers, while diesel users face a higher price as the government increases the petroleum levy despite lower international and underlying HSD costs.