KARACHI: Pakistan cut prices of petrol and high-speed diesel at the turn of the year, with a government notification on Wednesday announcing relief of up to Rs 10.28 per liter as Islamabad presses ahead with economic reforms following recent macroeconomic stabilization.

The price cuts come as inflation has eased in recent months after a prolonged slowdown, though households continue to complain of limited purchasing power following years of high prices, currency weakness and sluggish growth.

“The Government has revised the prices of the petroleum products based on recommendations of OGRA,” the Ministry of Energy said in a notification, referring to the Oil and Gas Regulatory Authority.

Under the revised rates, the price of high-speed diesel was cut by Rs 8.57 per liter to Rs 257.08, while petrol prices were reduced by Rs 10.28 per liter to Rs 253.17, effective from Jan. 1 for the next fortnight.

Fuel prices in Pakistan are reviewed every two weeks and are influenced by global oil market trends, currency movements and changes in domestic taxation. The pricing mechanism passes changes in import costs on to consumers, helping sustain the country’s fuel supply chain.

Petrol is primarily used for private transport, motorcycles, rickshaws and small vehicles, while diesel powers heavy transport used to move goods across the South Asian country.

While Pakistan has seen signs of macroeconomic stabilization, including a slowdown in inflation, many consumers say their purchasing power remains strained after years of economic stress.

Last year, the country was hit by devastating monsoon floods once again that damaged farmlands in the eastern province of Punjab — Pakistan’s breadbasket — pushing up food prices nationwide.