Pakistan to Adjust Fuel Prices as Inflation Eases, IMF Blocks Levy Cut
Pakistan's annual consumer inflation is projected to fall to about 9.0% in July 2026, ending three straight months of double‑digit readings as lower fuel prices and a favorable base effect take effect. The federal government announced a bi‑weekly price revision that reduces petrol by Rs0.75 per litre to Rs336.06 while raising high‑speed diesel by Rs2.24 to Rs390.62, effective 00:00 on July 30.
Petroleum Minister Ali Pervaiz Malik said the government will restore a targeted subsidy for low‑income households if international oil prices keep climbing, noting limited fiscal space under the IMF programme. He also confirmed that the International Monetary Fund is unlikely to approve a cut to the existing petroleum levy.
The Oil and Gas Regulatory Authority (OGRA) continues to set fuel prices using a seven‑day rolling average of international petroleum prices, a mechanism designed to pass price changes gradually to consumers. A recent Senate committee hearing highlighted concerns that this system creates price uncertainty for the public.
In parallel, the government approved a phased deregulation of the petroleum market, aiming to increase competition, improve transparency and lower costs. Reforms include reducing the crack spread for high‑speed diesel, cutting the number of petroleum depot points, launching a public price‑dashboard, and encouraging digitalisation of the supply chain.
Entities: Ali Pervaiz Malik · International Monetary Fund · Jameel Ahmad · Muhammad Aurangzeb · Oil and Gas Regulatory Authority · Pakistan · Pakistan Government · Petroleum Division · Saudi Arabia · Shehbaz Sharif
Claims
What the coverage asserts, and how well corroborated each claim is across sources.
- [○ 1 SOURCE] Petrol price was reduced by Rs0.75 per litre to Rs336.06 effective July 30, 2026. (Petroleum Division notification)
- [○ 1 SOURCE] OGRA determines fuel prices using a seven‑day rolling average of international oil prices. (OGRA Acting Chairman Masroor Khan to Senate committee)
- [○ 1 SOURCE] The government will reinstate a targeted subsidy if global oil prices continue to rise. (Petroleum Minister Ali Pervaiz Malik statement)
- [○ 1 SOURCE] The plan includes cutting the crack spread for high‑speed diesel from $70 to $35‑$40 per barrel. (Petroleum Committee meeting report)
- [○ 1 SOURCE] The federal government approved a phased deregulation plan for the petroleum sector. (Petroleum Committee meeting report)
- [○ 1 SOURCE] High‑speed diesel price increased by Rs2.24 per litre to Rs390.62 effective July 30, 2026. (Petroleum Division notification)
- [○ 1 SOURCE] The International Monetary Fund is unlikely to approve a reduction in the petroleum levy. (Petroleum Minister Ali Pervaiz Malik to Senate committee)
- [○ 1 SOURCE] Pakistan's annual consumer inflation is expected to ease to 9.0% in July 2026. (Insight Securities report)