PM slashes fuel prices by Rs22

ISLAMABAD:

The federal government on Friday announced a significant reduction in petroleum prices, slashing both petrol and high-speed diesel by Rs22 per litre.

According to a notification issued by the Ministry of Energy's Petroleum Division, high-speed diesel has been reduced by Rs22 per litre, while motor spirit (petrol) has also been cut by the same amount for the coming week.

Prime Minister Shehbaz Sharif had earlier promised that relief would be passed on to the public as soon as fiscal space became available. That commitment, officials said, has now been fulfilled and is being presented as a "Eidul Azha gift" for the public on the third day of the festival.

The prime minister has also noted that similar relief was provided in the previous week when fuel prices were reduced, reiterating that easing the burden on consumers remains a top government priority.

Officials further said that during the recent global oil price surge, despite rising international rates since March, the government avoided passing the full impact on domestic consumers by providing subsidies exceeding Rs130 per litre over time, thereby maintaining price stability.

They added that at a time when several countries in the region faced fuel shortages and long queues at petrol stations, Pakistan managed to ensure uninterrupted availability of petroleum products through timely policy interventions.

The government maintained that continued efforts are being made to balance fiscal constraints with public relief while ensuring steady fuel supply across the country.

According to the official notification, the revised ex-depot price of high-speed diesel has been fixed at Rs380.78, down from Rs402.78, while motor spirit (petrol) now stands at Rs381.78, reduced from Rs403.78.

Oil falls on truce prospects

Oil prices fell again on Friday on investor optimism that the United States and Iran would reach a deal to extend their ceasefire.

Oil markets have been up and down this week as investors assess the chances of a breakthrough between Washington and Tehran that could potentially resume shipping through the crucial Strait of Hormuz.

Those hopes had been briefly dashed by new US military strikes on Iran on Wednesday, countered by the Revolutionary Guard's targeting of an American airbase in the region.

By Thursday evening, negotiators had edged towards a deal to extend their fragile ceasefire for 60 days, pending approval from President Donald Trump, US sources told AFP.

While details of the possible agreement are scarce, "oil traders are taking an optimistic view that the end could be in sight for disruption in the region", said Derren Nathan, head of equity research at Hargreaves Lansdown.

However, "the market's patience may be tested if a deal is not agreed by early June, and this could have big ramifications for the oil price and the global stock market rally," said Kathleen Brooks, research director at XTB.

(With input from Agencies)