ISLAMABAD: Prime Minister Shehbaz Sharif on Friday announced a reduction in fuel prices following a decline in international oil rates, cutting diesel by Rs135 per litre and petrol by Rs12 per litre, effective from midnight on Saturday.
In a televised address, the prime minister said the measure was aimed at easing the burden of inflation, which he described as “crushing the nation.”
Sharif said he had rejected a proposal to recover the Rs129 billion in subsidies granted to the public over the past month following the international oil price drop.Instead, he decided to pass the relief directly to the people without reclaiming any of the subsidies.
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The prime minister also highlighted Pakistan’s role in facilitating regional peace efforts as Iran and the United States are set to hold talks in Islamabad on Saturday, aimed at achieving lasting peace following a two-week ceasefire.
He said Pakistan not only successfully persuaded both countries to agree to a temporary ceasefire, but also secured their commitment to hold negotiations in Islamabad to find a solution to the Middle East crisis.
Sharif praised Deputy Prime Minister and Finance Minister Ishaq Dar and his team for their role in the Iran-US situation, describing their efforts as “marvellous.”
He also lauded Field Marshal and Chief of Defence Staff (CDF) and Filed Marshal Syed Asim Munir and his team, saying their work to end hostilities and promote dialogue would be remembered in history.
“The temporary ceasefire between Iran and the US has been announced due to Pakistan’s efforts. The critical stage now is to hold talks to resolve issues that are make-or-break for all of us,” the prime minister said, urging citizens to pray for the success of the negotiations and the protection of innocent lives.
Sharif added that leaders from both the US and Iran would meet in Islamabad on Saturday and pledged that Pakistani authorities would do everything possible to ensure the talks’ success.
On domestic matters, he said the diesel price cut would benefit farmers ahead of the grain-harvesting season, reducing diesel to Rs385 per litre and petrol to Rs366 per litre.
He also confirmed that targeted subsidies for public transport and two-wheelers announced last week across all four provinces, Azad Jammu and Kashmir, and Gilgit-Baltistan, would continue.
“Governments should never leave their people at the mercy of fate. The people have always been my government’s priority and will remain so,” Sharif said.
“Nation-building requires collective effort. If we continue working together, no obstacle can prevent us from becoming a great nation.”
Petroleum Division announced a price reduction of Rs 11.83 per litre for petrol and a substantial cut of Rs 134.81 per litre for High-Speed Diesel (HSD). These price drops are supported by the government’s decision to maintain ongoing targeted subsidies for both two-wheeled and four-wheeled vehicles with effect from today (Saturday).
The new price of petrol is fixed at Rs 366.58 per litre after declined from Rs 378.41 per litre and rate of HSD is also declined from Rs 520.34 per litre to Rs 385.54 per litre. The price has work out on average global oil prices declined in last one week.
Sources said that Sources noted that the Rs 11.83 per litre reduction represents only a partial pass-through of the total price impact. This limited adjustment is due to the government’s ongoing commitment to targeted subsidies for low-income owners of registered motorcycles, a segment that makes up 45% of all petrol-consuming transport.
The government decided on a massive cut to High-Speed Diesel (HSD) prices to coincide with the start of the harvesting season. Because HSD is a primary driver of agricultural input costs, this reduction is intended to provide significant financial relief to farmers during this peak period. In addition, trucks will receive Rs70,000, passenger buses Rs100,000, mini-buses and wagons Rs40,000, cargo vehicles Rs80,000, and delivery vans Rs35,000, sources said.
The price revision follows a volatile period in the international energy market. While petrol prices surged from $80 to $150 per barrel since February, they have recently cooled to the $94–$96 range.
The impact on High-Speed Diesel has been even more dramatic. Since the onset of the war, HSD prices skyrocketed from $76 to $238 per barrel on the global market. The current domestic price reduction reflects the recent easing of these international pressures alongside the government’s aggressive subsidy intervention.
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