Pakistan cuts diesel by PKR 135, petrol by 12 as govt passes on global price drop

Pakistan’s government on Friday reduced fuel prices, passing on the benefit of falling global crude oil and petroleum product rates to consumers.

Prime Minister Shehbaz Sharif, in a televised address, said the government had cut diesel prices by PKR 135 to PKR 385 per liter and petrol prices by PKR 12 to PKR 366 per liter.

He said subsidies previously approved for two-wheelers, transporters and goods carriers would remain in place despite the price cuts.

Sharif said the reduction in diesel prices would provide much-needed relief to the agricultural sector and lower transportation costs for the public. He added that targeted subsidies would continue for citizens across all four provinces, as well as in Gilgit-Baltistan and Pakistan-administered Kashmir, in coordination with provincial governments.

Calling it a “historic moment,” the prime minister also pointed to developments in the Gulf region, saying that discussions had shifted from war to peace, with key parties agreeing to a ceasefire and dialogue.

According to Sharif, the leadership of Iran and the United States had agreed to a ceasefire proposal and would visit Islamabad for negotiations at Pakistan’s invitation.

He described the development as a moment of pride for Pakistan and the wider Muslim world, and praised Deputy Prime Minister Ishaq Dar and Army Chief Field Marshal Syed Asim Munir, saying their contributions would be remembered in “golden words.”

Sharif noted that while a temporary ceasefire had been achieved, lasting peace would require sustained dialogue. He urged the nation to pray for the success of ongoing negotiations, saying peace could save countless innocent lives.

On the economic front, he said rising global oil prices had previously driven severe inflation. He reminded the public of his promise to pass on relief once international prices declined, adding that the government had spent PKR 129 billion in recent weeks to shield citizens from rising costs.

Rejecting a proposal to retain part of the savings to offset expenditures, Sharif said the full benefit of reduced oil prices would be transferred to the public. He acknowledged the patience of citizens during inflationary pressures and reaffirmed the government’s commitment to financial discipline.

With the wheat harvesting season underway, the prime minister stressed that lowering input costs for farmers was essential. He said the purpose of cutting diesel prices was to benefit farmers and reduce their production costs.

Sharif also noted that petrol prices had previously risen sharply. He said the government had earlier reduced petrol prices by PKR 80 per liter by trimming the Petroleum Development Levy, which was halved from PKR 160 to PKR 80.

Despite that, petrol prices had increased by PKR 57 per liter, with a total rise of PKR 112 per liter over a month. Diesel prices had surged to an all-time high of PKR 520 per liter, jumping 89% from PKR 258 since the start of the Middle East conflict.