On Friday the government cut petrol prices by Rs74 per litre and diesel by Rs67 per litre, a decision prompted by a sharp plunge in international crude oil prices and a de‑escalation of geopolitical tensions across the Middle East.
The relief was announced in an official statement from the Prime Minister’s Office and confirmed by Prime Minister Shehbaz Sharif, who said the measure will provide immediate financial breathing space for households and businesses.
The move follows a US–Iran peace agreement, brokered with Pakistan’s diplomatic facilitation, and the subsequent reopening of the Strait of Hormuz — the strategic shipping lane through which a large share of the world’s oil passes.
As a result, the price of petrol will fall from Rs373 to Rs299 per litre, while diesel will decrease from Rs378 to Rs311 per litre.
He said the government was immediately passing on to the public the benefits of improved economic conditions in the region and lower international oil prices.
“We had made a promise to the nation and, by the grace of Allah, we are now fulfilling it,” he said.
The prime minister acknowledged the difficulties faced by citizens and thanked them for showing patience during the recent crisis. He said the federal government had used Rs129bn from development allocations and savings generated through austerity measures to provide relief and shield consumers from the full impact of rising fuel prices.
The prime minister further said Pakistan had avoided an energy crisis despite regional economic challenges. “There were no fuel shortages, no long queues and no disruption in the supply of petroleum products,” he said, attributing this to government planning and coordination between the federal and provincial governments.
He added that any further decline in global oil prices would be passed on to consumers in full. “Whatever reduction takes place in international oil prices will be transferred to the public in full,” he said, stressing that the government would not absorb cuts that could ease the burden on households.
The prime minister said the government would continue its determined efforts to preserve economic stability and bring down inflation, while keeping relief for ordinary people at the forefront of its policies.
Referring to recent regional developments, PM Shehbaz said that peace in the region had been made possible through Pakistan’s intensive mediation, and he described the signing of the Islamabad Memorandum of Understanding as a historic milestone that could reshape regional relations.
He also praised Field Marshal Asim Munir, Chief of Defence Forces and Chief of Army Staff (COAS), Deputy Prime Minister Ishaq Dar, Interior Minister Mohsin Naqvi and other members of the government for their contributions to the peace process and to steering the economy through the crisis, acknowledging their leadership and commitment.
The government has been reviewing petroleum prices on a weekly basis since the US-Israeli conflict with Iran began on February 28, monitoring global movements to ensure timely adjustments.