Petrol prices likely to drop by up to Rs35 per litre

Final price relief for consumers will depend on govt decisions.

The federal government is likely to drop fuel prices on Friday, with estimates suggesting a cut of up to Rs. 20 per litre on petrol and as much as Rs. 35 per litre on high-speed diesel.

The ex-refinery price of petrol has fallen to Rs. 225 per litre, down from Rs. 245 last week.

Similarly, diesel’s ex-refinery price has dropped to Rs. 269 per litre from Rs. 304 during the same period.

On the global market, petrol prices have decreased by around $10 per barrel to $117, while diesel prices have fallen by about $18 per barrel to $138.

Even after these declines, fuel prices are still higher than before the Gulf War. Petrol remains about 27% above the pre-war level of $91 per barrel, and diesel is nearly 49% higher than the $92 level recorded in February 2026.

The final price relief for consumers will depend on government decisions, as a petroleum levy of Rs. 106 per litre on petrol and Rs. 53 per litre on diesel is still being charged.

A reduction in fuel prices could lower transport and farming costs. However, ongoing geopolitical tensions, including reports of Israel violating the US-Iran ceasefire by carrying out strikes in Lebanon, could affect and potentially reverse the current downward trend in prices.