What happened
The federal government cut the ex-depot prices of petrol and high-speed diesel by Rs5 per litre each for the week starting Saturday 16 May 2026, according to a press release issued by the Petroleum Division on Friday.
Following the revision, petrol was set at Rs409.78 per litre, down from Rs414.78, and high-speed diesel at Rs409.58 per litre, down from Rs414.58. The Petroleum Division said the new prices would take effect from 16 May and remain in force until the next revision. Petrol is mainly used in private cars, three-wheelers and motorcycles, while high-speed diesel is the main fuel for heavy transport.
Why it matters
The reduction partially reversed an increase announced for the week ended 15 May, when the government raised petrol by Rs14.92 per litre and high-speed diesel by Rs15 per litre. It came after weeks of unusually volatile petroleum pricing that has fed directly into transport and food costs. KhabarWire has reported on the previous week’s increase.
The Nation reported that the price of petrol had risen by Rs55 per litre on 6 March 2026, and that further increases on 2 April took petrol to Rs458.5 and high-speed diesel to Rs520.35 per litre before the government cut the petroleum levy on petrol by Rs80 per litre the following day. More reductions followed on 10 April, before increases on 24 April and 30 April. The latest cut left prices well above their levels at the start of the year.
What is still uncertain
The Petroleum Division’s statement gave the new ex-depot rates and the effective date but did not set out the detailed breakdown of taxes, levies and exchange-rate assumptions behind the Rs5 reduction, or indicate how long the prices would hold. The government has in recent months revised petroleum prices week by week in response to movements in international crude and freight costs.
Sources & reporting notes
This is a summary of published material, not independent reporting. Sources reviewed on 2026-05-16. The rates and effective date are attributed to the Petroleum Division as reported below.
- The Nation — "Govt slashes petrol, diesel prices by Rs5 per litre"16 May 2026 · Reports the Rs5 per litre cut, the new ex-depot rates for petrol and high-speed diesel, the effective date and recent price movements.
