The federal government on Friday announced a significant reduction in petroleum prices, cutting high-speed diesel (HSD) by Rs135 per litre and petrol by Rs11.83 per litre for the week ending April 17, following a decline in global oil prices after a two-week ceasefire between the United States and Iran.
According to the new rates, the price of HSD has been fixed at Rs385.54 per litre, down from Rs520.35, marking a 26% decrease. Petrol will now cost Rs366.58 per litre, compared to Rs378.41 earlier. The price of kerosene has been reduced by Rs17.33 to Rs450.15 per litre, while light diesel oil (LDO) has been cut by Rs25.31 to Rs369.72 per litre.
Officials said the sharp reduction in diesel prices was not only linked to international market trends but also due to adjustments in the pricing formula, which previously provided higher margins to local refineries.
Tax rates on petroleum products remain unchanged, with the government continuing to collect around Rs39 per litre on diesel and up to Rs107 per litre on petrol through various levies.
Prime Minister Shehbaz Sharif said in a televised address that although the government had been advised to retain part of the price relief to offset subsidy costs, he rejected the proposal and decided to pass on the full benefit to consumers.
He said the reduction in diesel prices would particularly benefit farmers during the wheat harvesting season and help ease food inflation.
The prime minister added that targeted subsidies for transport, agriculture, and motorcycle users would continue, stressing that protecting the public from inflation remained his top priority.
Fuel prices had surged significantly after global oil markets were disrupted following the outbreak of conflict between the United States and Iran in late February.