The federal government has finally offered some relief to the public. Effective today, May 16, 2026, authorities have slashed the prices of petrol and high-speed diesel (HSD) by Rs. 5 per litre. This reduction will remain in place for the next seven days.
Following this revision, consumers will now buy petrol at Rs. 409.78 per litre. Meanwhile, high-speed diesel now costs Rs. 409.58 per litre. The Petroleum Division officially notified these rates to take effect immediately.
This minor drop in petrol and diesel prices arrives exactly a week after a significant increase. On May 9, the government aggressively raised the petrol price by Rs. 14.92 per litre and diesel by Rs. 15 per litre. Consequently, prices surged to Rs. 414.78 and Rs. 414.58 respectively.
Furthermore, earlier in May, the government imposed an additional levy of nearly Rs. 27. This move caused a massive Rs. 26.77 per litre jump in fuel prices, even though international rates remained stable. Another hike followed just a week later, pushing prices dangerously close to the Rs. 400 mark.
The Global Fuel Crisis Impact on Petrol & Diesel Prices
Overall, petroleum prices have skyrocketed by more than 50% recently. This upward trend connects directly to the ongoing global fuel crisis. In February, a joint US and Israeli attack on Iran sparked immediate retaliation. Consequently, Tehran blocked the Strait of Hormuz. This critical blockade severely disrupted global oil supplies and triggered a sharp spike in international crude oil prices.
Moreover, data from the past two months highlights extreme domestic volatility. In March, the government increased rates twice, clearly exceeding actual international market hikes. Then, April witnessed the sharpest surge yet. Authorities hiked the petrol price by an unprecedented Rs. 137 per litre, pushing it to a record Rs. 458.4 per litre. However, a few days later, the Prime Minister stepped in and announced an Rs. 80 per litre reduction in the petroleum levy, dragging the price back down to Rs. 378 per litre.
