ISLAMABAD, JUN 19: The government on Friday reduced the prices of petrol by Rs74 per litre and diesel by Rs67 per litre following a sharp decline in international crude oil rates and easing geopolitical tensions in the Middle East.
The relief was announced by Prime Minister Shehbaz Sharif in a statement issued by his office.
The relief comes in the wake of the US-Iran peace agreement, brokered and mediated with Pakistan’s diplomatic facilitation, and the subsequent reopening of the Strait of Hormuz, a critical global oil shipping route.
“Petrol prices are being reduced by Rs74 per litre and diesel prices by Rs67 per litre. As a result, the price of petrol will fall from Rs373 to Rs299 per litre, while diesel will decrease from Rs378 to Rs311 per litre,” the Prime Minister’s Office said in a statement.
He said the government was immediately passing on to the public the benefits of improved economic conditions in the region and lower international oil prices.
“We had made a promise to the nation and, by the grace of Allah, we are now fulfilling it,” he said.
The prime minister acknowledged the difficulties faced by citizens and thanked them for showing patience during the recent crisis. He said the federal government had used Rs129bn from development allocations and savings generated through austerity measures to provide relief and shield consumers from the full impact of rising fuel prices.
The prime minister further said Pakistan had avoided an energy crisis despite regional economic challenges. “There were no fuel shortages, no long queues and no disruption in the supply of petroleum products,” he said, attributing this to government planning and coordination between the federal and provincial governments.
He added that any further decline in global oil prices would be passed on to consumers. “Whatever reduction takes place in international oil prices will be transferred to the public in full,” he said.
The prime minister also said the government would continue efforts to maintain economic stability and reduce inflation while prioritising public relief.
Referring to regional developments, PM Shehbaz said peace in the region had become possible through Pakistan’s mediation efforts and described the signing of the Islamabad Memorandum of Understanding as a historic achievement.
He also praised Chief of Defence Forces and Chief of Army Staff (COAS) Field Marshal Asim Munir, Deputy Prime Minister Ishaq Dar, Interior Minister Mohsin Naqvi and other members of the government for their contributions to the peace process and economic management during the crisis.
The government has been reviewing petroleum prices on a weekly basis since the US-Israeli conflict with Iran on February 28.
As global rates increased, the government raised domestic fuel prices by more than 50%. Petroleum prices were revised twice in the first week of March. The steepest hike was recorded in April. During that month, petrol price was raised by Rs137 per litre to a record Rs458.4 per litre.
Meanwhile, diesel was at Rs275.7 per litre and jumped to as high as Rs520.35 per litre.
Petrol is mainly used by commuters in small vehicles, rickshaws and two-wheelers. Higher fuel prices significantly impact the budgets of middle and lower-middle-class households, who rely on petrol for daily travel.
On the other hand, a significant portion of the transport sector relies on high-speed diesel. Its price is considered inflationary since it is predominantly used in heavy goods transport vehicles, trucks, buses, trains, and agricultural machinery such as tractors, tube wells, and threshers.
