Prime Minister Shehbaz Sharif announced a Rs74 reduction in petrol prices and a Rs67 cut in high-speed diesel (HSD) on Friday, according to an official statement from his office. The adjustments follow declining international oil prices and regional economic improvements, the premier said. The new prices, set at Rs299.78 per litre for petrol and Rs311.78 for HSD, will take effect after the official notification is issued, according to a report from Dawn.com.
Context of Previous Price Hikes
The government had previously increased fuel prices multiple times amid global market volatility. On March 6, petrol and diesel prices rose by Rs55 per litre, drawing criticism as an “inflation bomb.” By April 3, petrol reached Rs458.40 per litre, and HSD hit Rs520.35, prompting public backlash. In response, the government reduced petrol prices to Rs378 per litre within 24 hours by slashing the petroleum levy by Rs80, according to the statement.
Economic Implications and Public Response
Fuel price changes disproportionately affect lower-income groups, as petrol is widely used in private transport and small vehicles, while diesel impacts heavy industries and power generation. The prime minister acknowledged public hardships, stating, “You demonstrated extraordinary patience and resilience during these difficult circumstances.” He credited the federal and provincial governments for maintaining economic stability through “complete coordination.”
Regional Peace and Policy Priorities
The price cuts coincide with easing tensions in the Middle East after a U.S.-Iran peace deal restored energy shipping in the Strait of Hormuz. PM Shehbaz emphasized that “whatever reduction occurs in international oil prices will be passed on to the people in full.” The government also highlighted its austerity measures and subsidies for underprivileged groups, stating “maximum relief to the public remains the highest priority.”
Government Accountability and Future Measures
The premier thanked officials, including Finance Minister Muhammad Aurangzeb and Petroleum Minister Ali Pervaiz Malik, for their roles in managing the economic crisis. He also acknowledged the efforts of Chief of Defence Forces Field Marshal Asim Munir and diplomats like Deputy PM Ishaq Dar. The statement reiterated the government’s commitment to “maintain economic stability and further reduce inflation,” though no specific future measures were outlined.
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