ISLAMABAD: Pakistan has sharply reduced fuel prices, slashing diesel by more than Rs134 ($0.48) per liter and lowering petrol prices, after a recent drop in global oil markets following weeks of volatility linked to Middle East tensions.
The latest revision comes after Pakistan raised fuel prices twice in March and early April, as global oil prices surged during conflict involving the United States, Israel and Iran, pushing domestic petrol and diesel to record highs and triggering inflationary pressures across the economy.
According to a government notification, the price of high-speed diesel will fall from Rs520.35 ($1.87) to Rs385.54 ($1.38) per liter, while petrol will decline from Rs378.41 ($1.36) to Rs366.58 ($1.32), effective April 11.
The cuts are expected to provide relief to consumers and key sectors such as agriculture and transport, which were hit hard by the earlier price surge driven by global supply concerns, particularly around the Strait of Hormuz.
Announcing the decision, Prime Minister Shehbaz Sharif said the government had chosen to pass on the full benefit of falling global prices to the public despite fiscal pressures.
“And today, when there is a decrease in prices, then I consider it my moral and political responsibility that every penny of this decrease should be given to you,” he said in a televised address.
Sharif said the government had rejected proposals to retain some of the savings from declining oil prices, adding that the move was aimed at easing the burden on households and supporting the agricultural sector during the wheat harvest season.
The reduction in diesel prices, a key fuel for farm machinery and freight transport, is expected to lower input costs for farmers and help curb food inflation, which economists have warned could rise in the coming months.
Pakistan, which imports the bulk of its energy needs, remains highly vulnerable to global oil price swings, with recent geopolitical tensions translating quickly into domestic fuel price adjustments and broader inflationary pressures.
The government had earlier raised petrol prices by more than 40 percent and diesel by nearly 55 percent in recent weeks, prompting public backlash and forcing authorities to introduce targeted subsidies and partial relief measures.
Officials say the latest price cut reflects easing pressure in international markets, though analysts caution that volatility could persist depending on developments in the Middle East and the outcome of ongoing diplomatic efforts.
