Govt cuts petrol and diesel prices by Rs5 per litre

ISLAMABAD: The federal government on Friday reduced the prices of petrol and high-speed diesel by Rs5 per litre each for the coming week, according to a notification issued by the Petroleum Division.

Under the revised rates, petrol will now be sold at Rs409.78 per litre, while high-speed diesel will cost Rs409.58 per litre. The Petroleum Division said the new prices would come into effect from midnight and remain in force for the next week.

The latest adjustment marks the first decline in fuel prices after a series of increases in recent weeks. Those hikes were linked to the fuel crisis that followed the blockade of the Strait of Hormuz during the conflict between the United States and Iran, which disrupted global oil supplies and pushed up international oil prices.

Recent price changes

Last week, the government raised the price of petrol by Rs14.92 per litre and high-speed diesel by Rs15 per litre, taking the rates to Rs414.78 and Rs414.58 per litre, respectively.

The United States and Israel launched an attack on Iran in February, after which Tehran responded with strikes and shut the Strait of Hormuz. The disruption in oil shipments led to a sharp increase in global petroleum prices.

As fuel costs climbed, the government increased petroleum prices by more than 50%. During the first week of March, petroleum product rates were raised twice, with the government saying the increases were higher than the rise recorded in international markets.

The steepest jump, however, was seen in April. Last month, the government increased the petrol price by Rs137 per litre, taking it to a record Rs458.4 per litre. A few days later, Prime Minister Shehbaz Sharif announced in a televised address that the petroleum levy on petrol would be reduced by Rs80 per litre, bringing the price down to Rs378 per litre.

Earlier this month, the government again increased the prices of petrol and high-speed diesel by Rs26.77 per litre, despite no corresponding rise in international rates, after imposing an additional levy of nearly Rs27 per litre on fuel.

A week later, petroleum product prices were raised once more, pushing rates close to Rs400 per litre. The Petroleum Division then issued another notification last week, increasing prices by nearly Rs15 per litre before the latest reduction announced on Friday.

The new cut slightly eases prices after repeated upward revisions over the past several weeks, though fuel rates remain elevated compared to earlier levels.