ISLAMABAD: Prime Minister Shehbaz Sharif on Friday announced a sharp reduction in petroleum prices, passing on the impact of declining global oil rates to consumers after Iran and the United States reached a peace deal that eased tensions in global energy markets.
Revised Fuel Prices
Under the revised prices, the government reduced petrol by Rs74.28 per litre and high-speed diesel (HSD) by Rs67.31 per litre. As a result, the price of petrol has been slashed from Rs373.78 per litre to Rs299.50 per litre, while HSD has dropped from Rs378.78 to Rs311.47 per litre.
Global Oil Market Context
The announcement comes as international crude oil prices dropped to around $75 per barrel, returning close to pre-conflict levels following the diplomatic breakthrough. Oil contracts on Friday traded between a high of $81.00 and a low of $72.83 before settling at $75.22, marking a decline of $7.22 or 8.73 percent from the previous week's close.
Sectoral Impact
HSD is widely used in the transport and agriculture sectors, while petrol is commonly used by motorcycles and cars. Officials said the reduction is expected to ease inflationary pressures in the economy, offering relief to consumers who have faced repeated fuel price hikes in recent months.
Prime Minister's Statement
In a statement, Prime Minister Shehbaz Sharif said that as the regional situation improves and global oil prices decline, the government has immediately passed on the benefit of reduced petroleum costs to the public. He said the federal government generated savings of Rs129 billion through adjustments in the development budget and austerity measures, which were used to provide relief to citizens amid rising fuel prices.
"The promise we made to the nation is, by the grace of Allah, now being fulfilled," the prime minister said, adding that the government fully understood the difficulties faced by the public and appreciated their patience and resilience during challenging times. He said the government made continuous efforts since the beginning of the crisis to reduce fuel prices within available fiscal space.
Energy Management
The prime minister further noted that some countries were forced to introduce fuel rationing during the regional economic crisis, while Pakistan avoided an energy shortage through effective planning and management. "As a result of our timely measures, there were no shortages, no long queues, and the public did not face any disruption in the availability of petroleum products," he said, appreciating the cooperation of provincial chief ministers in maintaining economic stability and supporting federal efforts.
He added that the government took all possible measures to shield citizens from global inflationary shocks. "We are now transferring the full benefit of lower international oil prices directly to consumers," he said, reiterating that efforts would continue to maintain economic stability and reduce inflation further.
Regional Context
The prime minister also referred to the broader regional context, stating that "Allah Almighty has honoured Pakistan" and that the Islamabad Memorandum of Understanding was a historic development. He paid special tribute to Field Marshal Syed Asim Munir, saying his "tireless efforts and professional capabilities" played a vital role in facilitating the peace agreement that contributed to stabilizing regional markets.
