PSO announces major cut in jet fuel prices
Pakistan State Oil significantly cut jet fuel prices, potentially lowering airfares, while the government adjusted levies to reduce retail petrol and HSD prices by Rs 5 per litre.
- Significant reduction in jet fuel prices and potential impact on airfares.
- Government adjustments to Petroleum Levy on petrol and HSD.
- Detailed breakdown of petrol and HSD price components and changes.
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