PSO announces major cut in jet fuel prices

ISLAMABAD: Pakistan State Oil (PSO) announced a major reduction in jet fuel prices on Sunday, slashing rates by Rs 111.44 per litre.

To shield consumers from a recent spike in ex-refinery costs for petrol, the government adjusted the Petroleum Levy (PL) on both petrol and HSD effective from Saturday.

According to the PSO’s official website, the jet fuel price was brought down to Rs 330.22 per litre, sparking hopes of a drop in domestic and international airfares. Aviation industry sources indicate that this substantial cut will significantly ease operational pressures for airlines, likely translating into cheaper ticket prices over the coming weeks.

READ MORE: Major airports hold 10-12 days of jet fuel

In its weekly pricing review, the government reduced the retail prices of both petrol and High-Speed Diesel (HSD) by Rs 5 per litre. To achieve this while managing shifting costs, significant adjustments were made to the Petroleum Levy (PL) and other pricing components.

The PL on petrol was slashed by Rs 9.24 per litre (dropping from Rs 117.41 to Rs 108.17). This reduction was used to absorb Rs 6.62 increase in supply costs, alongside relief from a waived Rs 2.69 exchange rate impact and a 31-paisa cut in the Inland Freight Equalisation Margin (IFEM).

The PL on HSD was raised by Rs 9.40 per litre (up from Rs 42.60 to Rs 52.00).

However, consumers still saw a price drop at the pump because this levy hike was entirely offset by Rs 7.70 reduction in HSD’s ex-refinery price and Rs 6.70 reduction in its IFEM rate.

Copyright Business Recorder, 2026