Govt cuts petrol price by Rs4 per litre, maintains diesel price

ISLAMABAD: The federal government on Friday announced a further reduction in the price of petrol, lowering it by Rs4 per litre while keeping the price of high-speed diesel (HSD) unchanged for the next fortnight.

According to a notification issued by the Ministry of Energy’s Petroleum Division, the price of petrol has been reduced from Rs381.78 to Rs377.78 per litre. However, the price of high-speed diesel has been maintained at Rs380.78 per litre.

The latest adjustment marks the fourth consecutive reduction in petroleum prices, providing some relief to consumers after months of significant increases linked to regional instability and fluctuations in global oil markets.

Last week, the government reduced the prices of both petrol and diesel by Rs22 per litre, describing the move as an “Eid gift” for the public. The latest reduction continues that trend as authorities seek to ease the financial burden on consumers.

Petroleum prices had surged sharply earlier this year following heightened tensions in the Middle East. The conflict intensified after the United States and Israel launched military strikes on Iran in February, prompting Tehran to retaliate and temporarily close the Strait of Hormuz, a key global oil shipping route. The disruption triggered a spike in international crude oil prices and affected fuel markets worldwide.

In response to rising international prices, the government increased domestic petroleum prices several times during March and April. The most significant hike came in April when petrol prices reached a record Rs458.40 per litre following an increase of Rs137 per litre.

Subsequently, Prime Minister Muhammad Shehbaz Sharif announced a reduction of Rs80 per litre in the petroleum levy, bringing the petrol price down to Rs378 per litre and providing partial relief to consumers.

Last month, fuel prices were again raised after the government imposed an additional levy of nearly Rs27 per litre on petroleum products. Several upward revisions pushed prices close to Rs400 per litre before the recent downward trend began.

Officials said the latest reductions reflect the government's efforts to pass on the benefits of improving market conditions and provide relief to the public amid ongoing economic challenges.