POL prices slashed amid global fuel ease

ISLAMABAD:

Prime Minister Shehbaz Sharif on Friday announced a reduction of Rs135 per litre in the price of high-speed diesel (HSD) and a Rs12 per litre cut in petrol from Saturday (today), passing on relief to consumers after a decline in international fuel prices.

In his televised address to the nation, the prime minister stated that world oil prices had declined, therefore, he considered it his "moral and political responsibility" to pass on the full benefit to the people.

Later, the Petroleum Division notified the new prices effective from April 11, lowering HSD to Rs385.54 per litre from Rs520.35 - a reduction of Rs134.8 - and petrol (motor spirit) to Rs366.58 from Rs378.41 - a reduction of Rs11.8.

The prime minister said that when the "storm of unprecedented inflation" began around the start of the US-Iran conflict, he had promised the public that benefits would be passed on to them immediately as soon as international fuel prices declined.

He said that he had been advised that part of the relief could be passed on to consumers, while retaining some portion to offset the Rs129 billion subsidy given by the government in recent weeks to the public. "I rejected this proposal without a moment's delay," he said.

When prices were "touching the sky", the burden of inflation had fallen on the public, he continued. Now that prices had declined, he considered it his "moral and political responsibility" to pass on the full benefit to the people.

The steep reduction in diesel - a key fuel for transport and agriculture - is expected to provide immediate relief to inflation-hit consumers and businesses, potentially easing food prices and logistics costs across the country.

While mentioning the wheat harvesting season, the prime minister emphasised that it was very important to reduce input costs. "If this is not done, not only will the farmer's hard work go to waste, but food items for the common people will also become more expensive," he said.

"Therefore, I announce an immediate reduction of Rs135 per litre in the price of diesel. The price of diesel, which currently stands at Rs520 per litre, will be reduced to Rs385 per litre from midnight tonight," the prime minister said.

"Similarly, the price of petrol, for which I had announced a reduction of Rs80 per litre last week, is being reduced further by Rs12 per litre," he said, adding that the petrol price would come down from Rs378 to Rs366 per litre from midnight.

He said that this would not only bring ease to the agricultural sector but would also significantly reduce public transport costs for the common man. He added that targeted subsidies for two-wheelers and public transport, introduced in consultation with the provinces, would continue.

Shehbaz said that his government, in coordination with the provincial governments, had never left the people alone even in the most difficult circumstances. "When international market prices had spiralled out of control and a wave of difficulties had emerged, even then my first priority was you," he said.

The price cut comes amid a volatile but temporarily calmer global oil market following the announcement of a ceasefire in the Middle East brokered by Pakistan in the early hours of Wednesday.

A two-week truce between Iran and the United States, mediated with Pakistan's involvement, has raised cautious hopes for stabilising energy supply routes, particularly through the Strait of Hormuz, a critical artery for global energy trade.

Analysts say Pakistan's fuel price cut reflects both international oil market adjustments and government efforts to pass on relief quickly to the public. However, the government did not specify how long the revised prices will remain in place.

The government is already charging a petroleum levy of Rs80.61 per litre for retail sales of petrol and Rs89.25 per litre for direct sales, while high-octane blending components (HOBC) attract significantly higher rates, exceeding Rs305.37 per litre.

The government is not charging a petroleum levy on high-speed diesel. It is also charging a levy of Rs20.36 per litre on kerosene oil, Rs15.84 per litre on light diesel oil (LDO), and Rs77 per litre on furnace oil.

Consumers are also paying a Rs2.50 per litre climate support levy on high-speed diesel, petrol, kerosene oil, and furnace oil. These levies will take effect from April 11, 2026, until further notice, reflecting the government's continued adjustments in fuel taxation and climate-related fiscal measures.