Government Cuts Petrol and Diesel Prices by Rs22 Per Litre Amid Falling Global Oil Costs
By Shahzad Paracha :
The federal government has announced a substantial reduction in fuel prices, lowering the cost of both petrol and high-speed diesel by Rs22 per litre in a move aimed at providing relief to consumers during Eidul Azha and easing pressure from rising living costs.
The decision was announced on Friday through a statement issued by the Prime Minister’s Office, with Prime Minister Shehbaz Sharif describing public relief as one of the government’s foremost priorities.
Under the revised rates, the price of petrol has been reduced from Rs403.78 per litre to Rs381.78, while high-speed diesel has fallen from Rs402.78 to Rs380.78 per litre. The new prices took effect from May 30 and will remain applicable for the next pricing period.
Government officials said the reduction was intended as a relief measure for citizens during the Eid holidays and followed another cut in petroleum prices announced a week earlier.
In its statement, the government said it had continued efforts to shield consumers from energy price shocks despite economic challenges, highlighting previous subsidy programmes introduced to support transport operators, motorcycle riders and rickshaw drivers.
The Prime Minister’s Office also pointed to earlier interventions during periods of elevated international oil prices, when fuel subsidies were used to cushion the impact on domestic consumers.
In a separate development, the Oil and Gas Regulatory Authority also announced a significant reduction in kerosene prices.
According to the official notification, kerosene oil has been reduced by Rs41.44 per litre, bringing the new price down to Rs272 from the previous rate of Rs313.44 per litre.
The latest cuts are expected to provide relief to households in remote and rural areas where kerosene remains an important source of fuel for cooking, heating and lighting.
Economists say the reductions could also lower transportation costs across various sectors, potentially easing inflationary pressures if businesses pass on the savings to consumers.
The government’s decision comes against the backdrop of declining international oil prices, which have retreated from recent highs as investors grow increasingly optimistic about a possible diplomatic breakthrough between the United States and Iran.
Improved prospects for a negotiated settlement have helped ease concerns over disruptions to global energy supplies, particularly in the Gulf region, which remains critical to international oil markets.
During Asian trading on Friday, global benchmark Brent crude slipped to around $93 per barrel, while US benchmark West Texas Intermediate traded below $88 per barrel, reflecting improved market sentiment over energy supply stability.
Pakistan, which imports a significant share of its petroleum requirements, remains highly sensitive to fluctuations in global oil prices. Changes in international markets often have a direct impact on domestic fuel pricing, transportation costs and inflation.
Analysts believe the latest reduction will be welcomed by consumers and businesses alike, particularly as higher fuel costs over the past year have contributed to increased expenses across the economy.
The government is expected to continue reviewing petroleum prices in line with international market trends, exchange-rate movements and fiscal considerations as it balances consumer relief with revenue requirements.
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