In a significant development late Friday, the government announced a further reduction in fuel prices, marking the second consecutive week of cuts as global oil markets showed signs of stabilization following weeks of volatility triggered by the Middle East conflict.
The Petroleum Division issued a notification confirming that petrol prices will decrease by Rs6 per litre, while high-speed diesel (HSD) prices will drop by Rs6.80 per litre. Effective from May 23, petrol will retail at Rs403.78 per litre and HSD at Rs402.78 per litre.
This adjustment follows last week’s Rs5 per litre decrease for both petrol and diesel, providing continued relief to consumers after months of steep increases fueled by rising international oil prices and currency depreciation. Petrol, extensively used in motorcycles, rickshaws, and private vehicles, affects a large segment of middle- and lower-middle-income households already burdened by high inflation.
Meanwhile, HSD is predominantly consumed by heavy transport vehicles, agricultural machinery, and industrial generators, meaning its price fluctuations can impact transportation and food costs on a wider scale.
The government has been revising petroleum prices weekly since the escalation of the US-Israeli conflict involving Iran, which disrupted global energy supplies and raised concerns over oil shipments passing through the strategic Strait of Hormuz.
As a major importer of energy, Pakistan experienced increasing economic strain as crude prices surged post-conflict. On March 6, shortly after tensions intensified, the government raised petrol and diesel prices by Rs55 per litre, sparking criticism from opposition parties and concern among consumers facing already high living expenses.
In response, Prime Minister Shehbaz Sharif introduced austerity measures aimed at curbing energy consumption and alleviating pressure on foreign exchange reserves. He also reportedly rejected proposals to further increase fuel prices despite ongoing global market instability.
However, on April 2, Petroleum Minister Ali Pervaiz Malik and Finance Minister Muhammad Aurangzeb announced sharp hikes of 43 percent in petrol prices and 55 percent in diesel prices, accompanied by plans for a targeted fuel subsidy scheme to support lower-income groups.
The following day, the prime minister reduced the petroleum levy by Rs80 per litre, lowering petrol prices to approximately Rs378 per litre in an effort to address public discontent over rising fuel costs.
On April 10, another major price cut was announced, with diesel prices reduced by Rs135 per litre and petrol by Rs12 per litre, as international oil markets began to ease.
Analysts note that these recent cuts indicate relative calm in global crude prices, but caution that Pakistan remains vulnerable to external energy shocks due to its heavy reliance on imported fuel and fragile foreign exchange reserves.
Petroleum prices in Pakistan are periodically reviewed based on changes in international oil rates, exchange rate fluctuations, and adjustments in taxes and petroleum levies.
