The Prices of HSD and Petrol Increased:

High-speed diesel (HSD) and petrol (Motor Spirit) prices were formally raised by the federal government by Rs. 15.00 and Rs. 14.92 per litre, respectively. These new rates will take effect on May 9, 2026. For the first time, the cost of both fuels has surpassed Rs. 400 per litre due to this modification.

High-Speed Diesel (HSD) prices have increased by Rs 15, from Rs 399.58 to Rs 414.58 per litre, according to a statement from the Petroleum Division. In a similar vein, the price of fuel has increased by Rs 14.92, from Rs 399.86 to Rs 414.78 per litre.

The most recent change comes after ongoing volatility in global oil markets due to geopolitical unrest and worries about interruptions to the world's fuel supply, particularly HSD.

Updated Fuel Prices (Effective May 9, 2026):

Key Context of The Story:

In order to reach the Rs. 1.47 trillion petroleum levy (PL) collection objective, the federal government made this strategic modification. For the fiscal year 2025–2026, the federal government hopes to meet this goal. However, the most recent review, which went into effect on May 9, 2026, markedly raised these prices once again.

1) Petroleum duty: For both goods, the government increased the petroleum duty by Rs. 13.91 per litre. The new tax is Rs. 42.60 for fuel and Rs. 117.41 for gasoline.

2) Reasoning: International oil market volatility was cited by authorities as the cause of the increase. especially impacted by currency rate pressures and regional geopolitical concerns.

3) Other Products: The price of kerosene oil decreased by Rs. 41.80 but that of gasoline and diesel increased. As a result, the new price per litre is Rs. 318.96.

Petroleum Levy (PL) Adjustment:

The petroleum levy (PL) on petroleum products was modified in the most recent weekly review, which went into effect on May 1, in order to achieve the Rs 1.4 trillion budgetary objective. The HSD levy was set at Rs 28.69 per litre. While the tariff at HOBC was set at Rs 305.37 per litre, the petrol levy was lowered by Rs 3.88 per litre. In a similar vein, the levy is Rs 15.84 per litre for light diesel oil (LDO) and Rs 20.36 per litre for kerosene oil.

The petroleum duty on HSD and petrol rose by Rs 13.91 per litre. According to reports, the price of petrol has gone up from Rs 103.50 to Rs 117.41 per litre, while the price of HSD has gone up from Rs 28.69 to Rs 42.60 per litre.

Key Developments According to The Prices:

The Pakistani government's May 2026 fuel price increases are a crucial financial move. The administration aims to satisfy stringent IMF requirements and close income gaps. The state has put meeting its petroleum levy (PL) objective of Rs. 1.47 trillion ahead of providing urgent assistance to the public. For this reason, the government is driving the price of gasoline and fuel over Rs. 400 per litre.

1) IMF Compliance: The most recent increase was motivated by a pledge to the IMF to keep the average tax on gasoline and diesel at Rs. 160 per litre in order to close tax gaps.

2) HOBC Premium: As part of a plan to charge premium gasoline consumers more harshly, the HOBC fee was raised even further, to almost Rs. 325 per litre.

3) Target Status: The government is on course to perhaps surpass the yearly target by the end of June, having already collected almost Rs. 1.23 trillion by late April 2026.

Concluding Thoughts:

However, regional conflicts such as the blockade of the Strait of Hormuz contributed to global oil instability. Therefore, the Rs. 13.91 per litre rise in the petroleum levy for both gasoline and diesel was the main cause of the May 9 increase. The government has already raised almost Rs. 1.23 trillion as of mid-April 2026. With the aggressive new PL rates of Rs. 42.60 for diesel and Rs. 117.41 for gasoline. It is now anticipated to surpass the yearly goal, perhaps hitting Rs. 1.56 trillion by June 30.