Inside the fuel price cut: Govt slashes petrol levy, raises tax on diesel
- By Aleem Malik -
- Jun 20, 2026
ISLAMABAD: Following the government’s decision to reduce petrol and diesel prices by Rs 74 and Rs 67 per litre, respectively, details have emerged showing significant adjustments to the petroleum levy, ARY News reported on Friday, citing sources.
According to sources, the government slashed the petroleum levy on petrol by Rs 40.49 per litre, bringing the new levy down to Rs 66.25 per litre.
Conversely, the levy on high-speed diesel was increased by Rs 19.71 per litre, pushing the total levy on diesel up to Rs 72.97 per litre.
Furthermore, the levy on kerosene oil has been set at Rs 20.36 per litre, while the levy on light diesel oil stands at Rs 15.84 per litre.
Read More: Petrol price in Pakistan from June 20, 2026
In an important statement on oil prices after regional and global peace was established through Pakistan’s mediation, the PM announced a reduction of Rs74 per litre in petrol price and Rs67 per litre in diesel rate.
With the cut, petrol price will come down from Rs373 to Rs299 per litre, the PM said. The diesel price will drop from Rs378 to Rs311 per litre.
Citing improvement in the economic situation, the PM said the benefit of lower oil prices is being passed on to the people. “The promise we made to the nation, Alhamdulillah, we are going to fulfill that,” Shehbaz Sharif said.
He said he understands the difficulties of the public, who showed exemplary patience and tolerance during the tough situation. “We are deeply grateful to the people for supporting the government in difficult times,” the PM said.