ISLAMABAD – Relief for inflation-weary people as the federal government on Friday announced Rs5 per litre reduction in petrol and diesel prices, according to an official notification issued by the Petroleum Division. The revised rates will take effect from May 16.
After the latest cut, petrol will now be priced at Rs409.78 per litre, while high-speed diesel (HSD) will stand at Rs409.58 per litre.
Petrol continues to directly impact household budgets, particularly for middle- and lower-income groups. Diesel, on the other hand, remains the backbone of heavy transport and large-scale generators, making its price crucial for the logistics and energy sectors.
Sharif led government has been revising petroleum prices on a weekly Friday schedule amid persistent instability in global oil markets. Officials have linked this volatility to disruptions triggered after the US-Israeli conflict with Iran began on February 28, which reportedly caused shockwaves in global energy supply chains. The situation was further aggravated by tensions affecting the Strait of Hormuz, a vital shipping route through which nearly one-fifth of the world’s oil and gas flows in normal conditions.
The latest reduction comes just a week after a sharp increase, when petrol was raised by Rs14.92 per litre and diesel by Rs15 per litre, adding to already volatile market conditions.
Since the onset of the conflict, fuel prices have swung dramatically. On March 6, the government imposed a steep hike of Rs55 per litre on both petrol and diesel, followed by austerity measures announced on March 9.
Despite mounting pressure from global oil markets, Prime Minister Shehbaz Sharif reportedly rejected proposals to increase fuel prices on three separate occasions in the following weeks.
