By Shahzad Paracha :

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Pakistan’s federal government has announced another reduction in fuel prices, lowering the cost of petrol and high-speed diesel for the second consecutive week amid fluctuations in global oil markets and easing pressure on international petroleum supplies.

According to a notification issued by the Petroleum Division on Friday, the price of petrol has been reduced by Rs6 per litre, while high-speed diesel has been cut by Rs6.80 per litre. The revised prices came into effect from midnight and will remain applicable for the next week.

Under the new rates, petrol will now be sold at Rs402.98 per litre, while high-speed diesel will cost Rs403.58 per litre across the country.

The latest adjustment follows a similar reduction announced last week, when the government lowered the prices of both petrol and diesel by Rs5 per litre each. Despite the recent relief, fuel prices in Pakistan remain significantly higher than earlier this year following months of sharp increases linked to regional tensions and rising global crude oil prices.

The fuel crisis intensified after the United States and Israel launched attacks on Iran in February, triggering retaliatory strikes by Tehran and the temporary closure of the Strait of Hormuz, one of the world’s most critical oil shipping routes. The disruption severely affected global energy supplies and pushed international crude prices sharply upward.

Pakistan, which relies heavily on imported petroleum products, was among the countries hit hardest by the global market shock. The government responded with multiple fuel price hikes as international oil rates climbed rapidly during March and April.

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During the first week of March, the government increased petroleum prices twice, stating that the rise in local rates reflected soaring international prices. However, critics argued that domestic increases exceeded the actual rise in global markets, placing additional financial pressure on consumers already struggling with inflation.

The sharpest jump came in April when petrol prices surged by Rs137 per litre, pushing the rate to a record Rs458.4 per litre. The increase sparked widespread public concern and intensified criticism from opposition parties and transport associations over the rising cost of living.

Days later, Prime Minister Shehbaz Sharif announced a reduction in the petroleum levy during a televised address, lowering petrol prices by Rs80 per litre and bringing the rate down to Rs378 per litre.

However, fuel prices soon began rising again. Earlier this month, the government increased the prices of both petrol and diesel by Rs26.77 per litre after imposing an additional levy of nearly Rs27 per litre despite no equivalent increase in international crude prices.

Another increase followed within days, taking fuel prices close to Rs400 per litre once again. The Petroleum Division later issued an additional notification raising prices by nearly Rs15 per litre before the latest reductions were announced.

Economists say the frequent revisions highlight Pakistan’s vulnerability to international energy market volatility and the country’s continued dependence on imported fuel. Rising petroleum prices have contributed significantly to inflation, increasing transportation and production costs across multiple sectors.

High-speed diesel prices are particularly important for Pakistan’s economy because the fuel is widely used in heavy transport, agriculture and industrial machinery. Any increase in diesel prices often leads to higher costs for food, goods transportation and public transport fares.

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Analysts believe the latest reductions may provide temporary relief to consumers and businesses, although uncertainty in global oil markets continues to pose risks. International crude prices remain sensitive to developments in the Middle East, particularly tensions involving Iran and the security of shipping routes through the Gulf region.

The government has maintained that fuel price adjustments are necessary to align domestic rates with global market trends and meet fiscal targets. However, opposition parties and consumer groups continue to criticise the taxation and levy structure imposed on petroleum products, arguing that it places a heavy burden on ordinary citizens.

Pakistan’s fuel pricing mechanism is reviewed regularly based on international crude prices, exchange rate fluctuations and government-imposed taxes and levies. Any further escalation in regional conflict or disruption in oil supplies could again affect petroleum rates in the coming weeks.

Pakistan Cuts Petrol and Diesel Prices for Second Consecutive Week

Pakistan’s federal government has announced another reduction in fuel prices, lowering the cost of petrol and high-speed diesel for the second consecutive week amid fluctuations in global oil markets and easing pressure on international petroleum supplies.

According to a notification issued by the Petroleum Division on Friday, the price of petrol has been reduced by Rs6 per litre, while high-speed diesel has been cut by Rs6.80 per litre. The revised prices came into effect from midnight and will remain applicable for the next week.

Under the new rates, petrol will now be sold at Rs402.98 per litre, while high-speed diesel will cost Rs403.58 per litre across the country.

The latest adjustment follows a similar reduction announced last week, when the government lowered the prices of both petrol and diesel by Rs5 per litre each. Despite the recent relief, fuel prices in Pakistan remain significantly higher than earlier this year following months of sharp increases linked to regional tensions and rising global crude oil prices.

The fuel crisis intensified after the United States and Israel launched attacks on Iran in February, triggering retaliatory strikes by Tehran and the temporary closure of the Strait of Hormuz, one of the world’s most critical oil shipping routes. The disruption severely affected global energy supplies and pushed international crude prices sharply upward.

Pakistan, which relies heavily on imported petroleum products, was among the countries hit hardest by the global market shock. The government responded with multiple fuel price hikes as international oil rates climbed rapidly during March and April.

7

During the first week of March, the government increased petroleum prices twice, stating that the rise in local rates reflected soaring international prices. However, critics argued that domestic increases exceeded the actual rise in global markets, placing additional financial pressure on consumers already struggling with inflation.

The sharpest jump came in April when petrol prices surged by Rs137 per litre, pushing the rate to a record Rs458.4 per litre. The increase sparked widespread public concern and intensified criticism from opposition parties and transport associations over the rising cost of living.

Days later, Prime Minister Shehbaz Sharif announced a reduction in the petroleum levy during a televised address, lowering petrol prices by Rs80 per litre and bringing the rate down to Rs378 per litre.

However, fuel prices soon began rising again. Earlier this month, the government increased the prices of both petrol and diesel by Rs26.77 per litre after imposing an additional levy of nearly Rs27 per litre despite no equivalent increase in international crude prices.

Another increase followed within days, taking fuel prices close to Rs400 per litre once again. The Petroleum Division later issued an additional notification raising prices by nearly Rs15 per litre before the latest reductions were announced.

Economists say the frequent revisions highlight Pakistan’s vulnerability to international energy market volatility and the country’s continued dependence on imported fuel. Rising petroleum prices have contributed significantly to inflation, increasing transportation and production costs across multiple sectors.

High-speed diesel prices are particularly important for Pakistan’s economy because the fuel is widely used in heavy transport, agriculture and industrial machinery. Any increase in diesel prices often leads to higher costs for food, goods transportation and public transport fares.

Analysts believe the latest reductions may provide temporary relief to consumers and businesses, although uncertainty in global oil markets continues to pose risks. International crude prices remain sensitive to developments in the Middle East, particularly tensions involving Iran and the security of shipping routes through the Gulf region.

The government has maintained that fuel price adjustments are necessary to align domestic rates with global market trends and meet fiscal targets. However, opposition parties and consumer groups continue to criticise the taxation and levy structure imposed on petroleum products, arguing that it places a heavy burden on ordinary citizens.

Pakistan’s fuel pricing mechanism is reviewed regularly based on international crude prices, exchange rate fluctuations and government-imposed taxes and levies. Any further escalation in regional conflict or disruption in oil supplies could again affect petroleum rates in the coming weeks.

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