What happened
The federal government on Wednesday, 19 August 2026, cut the price of high-speed diesel (HSD) by Rs32.63 a litre while raising the price of petrol by Rs2.97, setting the new rates to apply from August 20.
A notification from the Petroleum Division fixed petrol at Rs337.51 per litre and high-speed diesel at Rs363.06 per litre, according to The Express Tribune.
The refinery talks
Earlier the same day, Prime Minister Shehbaz Sharif directed Petroleum Minister Ali Pervaiz Malik to travel to Karachi immediately and negotiate with local oil refineries to bring down the price of locally produced diesel, the Prime Minister’s Office said.
“Most of the diesel is produced by local refineries,” the prime minister said during the meeting, according to the PMO, instructing Malik to complete the negotiations personally and to “provide immediate relief to the public to the maximum extent possible.”
Speaking at a press conference alongside Information Minister Attaullah Tarar, Malik said the refineries had accepted the government’s request for a significant reduction and that the Oil and Gas Regulatory Authority (Ogra) would announce a cut of around Rs30-32 per litre after completing its calculations. He thanked the refineries and said he would travel to Karachi to work through outstanding matters, including long-delayed refinery upgrading projects.
Why it matters
Diesel powers much of Pakistan’s freight, agricultural and public-transport fleet, so the cut is meant to ease costs that had climbed sharply for transporters and farmers. The reduction came after successive increases: the government had raised petrol and HSD for August 19 by Rs3.34 and Rs5.27 per litre respectively, following increases a day earlier.
The government moved to a daily fuel-pricing mechanism in July 2026, replacing weekly revisions, as renewed conflict in the Middle East kept global oil markets volatile. The Express Tribune reported that diesel prices had risen by about Rs72 per litre and petrol by at least Rs24 per litre since the mechanism began, though prices remained below the peaks reached in April. The petroleum ministry had earlier proposed cutting the petroleum levy, but the proposal was not adopted.
The diesel rollback also followed a nine-day nationwide strike by the All Pakistan Goods Transport Alliance, which was deferred for 40 days on 16 August after the government assured transporters their grievances would be addressed, with fuel pricing among the key concerns.
What remains unclear
The new rates were set under a mechanism that can revise prices daily, so the relief may be short-lived if international benchmarks move again. The government has not said whether the petroleum levy will be reduced, leaving open how far further relief can be funded.
Sources & reporting notes
This is a summary of published reporting, not independent reporting. Details and quoted remarks are as carried by the cited sources, which were reviewed on 19 August 2026.
- The Express Tribune — "Govt cuts diesel price by Rs32.63, raises petrol by Rs2.97 for Aug 20"19 August 2026 · The Petroleum Division notification, the new petrol and HSD rates, the refinery negotiations and Malik's press conference.
- The Express Tribune — "PM directs petroleum minister to go to Karachi, negotiate diesel price cut with local oil refineries"19 August 2026 · The prime minister's directive, the PMO statement and the recent increases in petrol and diesel.
- Dawn — "Diesel price nose-dives by Rs32.63, petrol registers Rs2.97 increase"19 August 2026 · Confirmation of the revised rates, their applicability from August 20 and the daily pricing mechanism.
