The federal government has given a small relief on petrol prices but taken back most of it through higher taxes. On Friday, June 5, 2026, the price of petrol was reduced by Rs 4 per litre, bringing it down to Rs 377.78 per litre effective from Saturday, June 6. The price of high-speed diesel remained unchanged at Rs 380.78 per litre.
However, this relief was largely cancelled by a big jump in the Petroleum Levy. The government increased the levy on petrol by Rs 24.74 per litre, raising it from Rs 91.34 to Rs 116.08 per litre. This means the government will collect much more revenue from fuel users.
The decision comes even as global oil prices have been falling. Analysts say the government is using high taxes to meet its revenue targets ahead of the new budget. While consumers get only Rs 4 relief, the actual benefit from lower international prices was much higher but was mostly absorbed by the increased levy.
This approach helps the government collect more money but puts extra burden on common people, transporters, and businesses. Many critics called it unfair as the small price cut offers little real comfort amid high inflation.
The new prices will stay in effect for the next two weeks. People hope the government will pass on more benefits from falling global oil prices in future adjustments.
