Pakistan cuts petrol and diesel prices by Rs5 per litre for next week

The federal government has reduced the prices of petrol and high-speed diesel by Rs5 per litre each for the upcoming week, according to an official notification issued by the Petroleum Division on Friday.

Under the revised pricing structure, petrol will now be available at Rs409.78 per litre, while high-speed diesel will cost Rs409.58 per litre. The new rates will take effect from midnight and remain in force for one week.

The Petroleum Division stated that this marks the first reduction in fuel prices after several weeks of continuous increases driven by volatility in global oil markets. The recent price fluctuations were largely linked to supply disruptions caused by geopolitical tensions in the Middle East, particularly the conflict involving the United States and Iran and concerns over the Strait of Hormuz.

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In the previous review, fuel prices were raised significantly, with petrol increasing by Rs14.92 per litre and high-speed diesel by Rs15 per litre. Earlier in the year, Pakistan saw multiple rounds of fuel price hikes, including a record increase of Rs137 per litre in petrol rates at one point, driven by surging international crude oil prices and adjustments in petroleum levies.

Officials noted that global oil supply disruptions and rising import costs had contributed to repeated upward revisions in domestic fuel prices. However, recent stabilisation in international markets has allowed a minor downward adjustment.

Despite the latest reduction, fuel prices remain at historically high levels, continuing to place pressure on transportation costs, inflation, and household budgets. Economists warn that even small changes in fuel prices have a cascading effect on the overall cost of living, particularly in food and logistics sectors.

The government is expected to continue reviewing petroleum prices on a fortnightly basis in line with international market trends and domestic fiscal requirements.