Pakistan Announces Massive Cut in Fuel Prices

ISLAMABAD: Prime Minister Shehbaz Sharif on Friday formally announced a substantial downward revision in petroleum product prices, reducing petrol by Rs74 per litre and high-speed diesel by Rs67 per litre.

Following the latest adjustment, petrol prices have been reduced from Rs373 per litre to Rs299 per litre, while high-speed diesel has been brought down from Rs378 per litre to Rs311 per litre. The revision is expected to deliver broad-based relief across households, transport operators, agricultural stakeholders, and industrial consumers nationwide.

According to a statement issued by the Prime Minister’s Office, the federal government has immediately passed on the benefit of declining international crude oil prices to end consumers, consistent with its stated policy of transferring global price advantages to the domestic market during periods of volatility.

The price reduction is anticipated to ease transportation expenditures, lower production input costs in agriculture, and reduce overall energy-related expenses for consumers. Market analysts further suggest that the adjustment may contribute to moderating inflationary pressures, particularly in food and logistics sectors that are highly sensitive to fuel costs.

The prime minister emphasized that the government fully recognizes the financial strain faced by citizens and appreciated public resilience during recent economic challenges. He reiterated that the administration remains committed to ensuring direct relief whenever international market conditions allow.

It was further stated that approximately Rs129 billion was utilized by the federal government through fiscal savings, development reallocations, and austerity-driven measures to absorb the impact of earlier global oil price increases and shield consumers from sharper domestic adjustments.

Despite regional economic instability and energy market volatility, the government maintained uninterrupted fuel supply chains and avoided disruptions such as rationing or shortages experienced in other jurisdictions. Officials highlighted that coordinated governance mechanisms ensured stable availability of petroleum products across the country.

The statement credited both federal and provincial administrations for maintaining macroeconomic and supply-side stability, noting that collaborative efforts were instrumental in managing inflationary pressures during the crisis period.

Reaffirming future policy direction, the prime minister stated that any subsequent decline in global oil prices would continue to be reflected fully in domestic pricing. He added that economic stabilization, inflation control, and public welfare would remain core priorities of the government.

The statement also outlined that austerity measures were implemented across multiple government departments, alongside targeted subsidies for vulnerable segments to mitigate the impact of rising living costs during the period of elevated inflation.

Separately, the prime minister linked recent economic stability gains with Pakistan’s diplomatic engagement in regional peace efforts, stating that constructive mediation contributed to de-escalation in Middle Eastern tensions and the signing of the Islamabad Memorandum of Understanding.

He described the development as a significant diplomatic milestone, crediting it with enhancing Pakistan’s international profile and role in regional stability frameworks.

Prime Minister Shehbaz Sharif acknowledged the contributions of senior civil and military leadership, including Field Marshal Syed Asim Munir, Deputy Prime Minister and Foreign Minister Senator Ishaq Dar, Interior Minister Syed Mohsin Raza Naqvi, and members of the economic and foreign policy teams, including Finance Minister Muhammad Aurangzeb, Planning Minister Ahsan Iqbal, Economic Affairs Minister Ahad Khan Cheema, Petroleum Minister Ali Pervaiz Malik, and senior officials from relevant ministries and the Federal Board of Revenue.

He stated that coordinated institutional efforts enabled Pakistan to navigate complex economic conditions while safeguarding consumers from the full impact of global energy price volatility.