Orders that the price of petrol be reduced by Rs 74, that of diesel by Rs 67. Commits to passing on the benefits of lower costs to the people.
Prime Minister Shehbaz Sharif. Photo: File
ISLAMABAD:
Prime Minister Shehbaz Sharif announced a sharp reduction in oil prices on Friday, passing on to consumers the impact of falling global oil prices after Iran and the United States reached a peace deal that eased tensions in global energy markets.
Under the revised prices, the government has reduced petrol by Rs 74.28 per liter and high speed diesel (HSD) by Rs 67.31 per litre. As a result, the price of petrol was reduced from Rs 373.78 per liter to Rs 299.50 per liter, while the HSD was reduced from Rs 378.78 to Rs 311.47 per litre.
The announcement comes as international crude oil prices have fallen to around $75 per barrel, returning to pre-conflict levels following the diplomatic breakthrough. Oil contracts traded between a high of $81.00 and a low of $72.83 on Friday before settling at $75.22, marking a decline of $7.22 or 8.73 percent from the previous week’s close.
HSD is widely used in the transportation and agricultural sectors, while gasoline is commonly used in motorcycles and cars. Officials said the reduction should ease inflationary pressures in the economy, providing relief to consumers who have faced repeated fuel price hikes in recent months.
In a statement, Prime Minister Shehbaz Sharif said that as the regional situation improves and global oil prices fall, the government has immediately passed on the benefit of reduced oil costs to the public.
He said the federal government had generated savings of Rs129 billion through development budget adjustments and austerity measures, which were used to provide relief to citizens amid rising fuel prices.
“The promise we made to the nation is, by the grace of Allah, coming true,” the Prime Minister said, adding that the government fully understood the difficulties faced by the public and appreciated their patience and resilience in these difficult times.
He said the government had made continuous efforts since the start of the crisis to reduce fuel prices within the available fiscal space.
The Prime Minister further noted that some countries were forced to introduce fuel rationing during the regional economic crisis, while Pakistan avoided energy shortage through effective planning and management.
“Thanks to our timely measures, there have been no shortages, no long queues, and the public has not faced any disruption in the availability of petroleum products,” he said, appreciating the cooperation of provincial chief ministers in maintaining economic stability and supporting federal efforts.
He added that the government had taken all possible measures to protect citizens from global inflationary shocks. “We are now transferring all the benefits of lower international oil prices directly to consumers,” he said, reiterating that efforts would continue to maintain economic stability and further reduce inflation.
The Prime Minister also spoke about the broader regional context, saying “Allah Almighty has honored Pakistan” and that the Islamabad Memorandum of Understanding was a historic development.
He paid special tribute to Field Marshal Syed Asim Munir, saying his “tireless efforts and professional abilities” played a vital role in facilitating the peace agreement that helped stabilize regional markets.
