ISLAMABAD: Prime Minister Shehbaz Sharif on Friday announced a Rs135 per litre cut in diesel and Rs12 per litre in petrol prices for the week ending April 17 to pass on the impact of ease in global prices following a two-week ceasefire between the United States and Iran.
The ex-depot price of high-speed diesel (HSD) has now been fixed at Rs385.54 per litre against Rs520.35, showing a 26 per cent or Rs135 per litre decrease. HSD is considered the most inflationary item given its use in freight transportation. On the other hand, petrol price has been cut by around 3pc to Rs366.58 per litre for the next week from Rs378.41, down by Rs11.83.
The price of kerosene was also reduced by Rs17.33 to Rs450.15 per litre and that of light diesel oil (LDO) by Rs25.31 to Rs369.72 per litre.
Informed sources said the reduction in the diesel price was not purely because of a fall in global rates, but chiefly because of the correction in the pricing formula that entailed undue benefit to local refineries as the spread between the local and imported products expanded as the war prolonged.
Decline comes as govt passes on lower global prices to consumers
It was pointed out that more than 70pc diesel was produced locally but its price parity calculation with the Middle East provided substantially higher financial take to local refineries. The correction helped reduce diesel rate substantially greater than petrol, they said.
In doing so, the tax rates were kept unchanged on all products. The government currently charges about Rs39 per litre on HSD in the shape of Rs36 customs duty and climate support levy.
The total tax on petrol amounts to Rs107 per litre, including Rs81 petroleum levy, Rs24 customs duty and Rs2.5 climate levy.
The government also charges about Rs21 per litre petroleum levy on kerosene and about Rs16 per litre on LDO, officials said.
Separately, Deputy Prime Minister and Foreign Minister Ishaq Dar shared the notification for the new prices on X, according to which the price of kerosene has also been reduced by Rs17.33 per litre to Rs450.15 and that of light diesel oil by Rs25.31 per litre to Rs369.72.
In a televised speech ahead of US-Iran talks beginning on Saturday, the prime minister said he had been advised to retain part of the fall in the international prices to recoup part of Rs129bn the government had spent on fuel subsidy over the past month.
“I rejected the proposal without wasting a moment” because he had personally witnessed how the people of Pakistan had absorbed the sudden skyrocketing price hike with patience, the prime minister said, adding that it was now his moral and political duty to give back each rupee of reduction in fuel prices.
He said the cut in diesel price was also important to ensure that farmers did not face losses while wheat harvest had already begun and this would also add food inflation for the common people.
He said that not only the reduction in petrol and diesel rates but the targeted subsidy announced by the government without cooperation and contribution of the provincial government for two-wheelers, public transport and agriculture would continue.
The prime minister said his priority remained the general public throughout the tough times to protect them from inflation and provide a better future to the next generation.
Petrol and diesel rates have gone up from Rs266 and Rs281 per litre, respectively, after the US-Israel attacked Iran on Feb 28, sending shockwaves to the global energy markets.
Published in media, April 11th, 2026
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