Pakistan on Friday reduced petrol and diesel prices for the second consecutive week as the government attempted to ease pressure on consumers following months of sharp increases linked to tensions in the Middle East and disruptions in global oil supplies.
According to a notification issued by the Petroleum Division, petrol prices fell by Rs6 per litre while high-speed diesel prices dropped by Rs6.80 per litre.
Under the revised rates, petrol will now sell for Rs402.98 per litre while high-speed diesel will cost Rs403.58 per litre.
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The new prices took effect from midnight and will remain applicable for the next week.
Last week, the government had also reduced prices of both petrol and diesel by Rs5 per litre each.
Despite the latest cuts, fuel prices remain historically high after months of repeated increases triggered by the regional conflict involving Iran, the United States and Israel.
The conflict intensified after US and Israeli strikes on Iran earlier this year prompted Tehran to retaliate and close the Strait of Hormuz, one of the world’s most important oil shipping routes.
The closure disrupted global oil supplies and pushed international crude prices sharply higher.
Fuel prices surged after Middle East conflict
As global oil prices climbed, Pakistan increased petroleum prices several times over recent months.
The government raised fuel prices by more than 50% during the crisis period.
Officials increased petroleum product prices twice during the first week of March, saying international market conditions had worsened significantly.
However, some increases exceeded global price movements after the government imposed additional levies on petroleum products.
The sharpest rise came in April when petrol prices jumped by Rs137 per litre. That increase pushed petrol to a record Rs458.4 per litre.
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Days later, Prime Minister Shehbaz Sharif announced an Rs80 per litre reduction in the petroleum levy during a televised address. The move brought petrol prices down to Rs378 per litre temporarily.
Earlier this month, the government again raised petrol and diesel prices by Rs26.77 per litre despite no matching rise in global rates.
Authorities imposed an additional levy of nearly Rs27 per litre on fuel products.
A week later, prices increased again and approached Rs400 per litre before another notification raised rates by nearly Rs15 per litre.
Consumers continue facing pressure despite recent cuts
Analysts say the latest reductions may provide limited relief because transport and food prices have already increased sharply across the country.
Pakistan heavily depends on imported fuel and remains vulnerable to international oil market fluctuations.
Economists also warn that petroleum levies have become a major revenue source for the government amid fiscal pressure and ongoing commitments linked to the International Monetary Fund programme.
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Meanwhile, consumers and transporters continue expressing concerns over fuel price volatility and rising living costs.
The government says adjustments in petroleum prices remain linked to international oil trends, exchange rate movements and fiscal requirements.