Govt slashes petrol price by Rs74, diesel by Rs67 per litre

PM Shehbaz says govt has fulfilled its promise to the nation, thanks public for support in hard times

Prime Minister Shehbaz Sharif on Friday announced a reduction in petroleum prices, saying the price of petrol had been cut by Rs74 per litre, while diesel prices had been reduced by Rs67 per litre.

“Following the revision, the price of petrol will decrease from Rs373 to Rs299 per litre, while diesel will fall from Rs378 to Rs311 per litre,” the prime minister said in a statement issued by the Prime Minister’s Office.

The announcement came after PM Shehbaz, a day earlier, signed the 'Islamabad Memorandum of Understanding' as a mediator, formalising a major diplomatic breakthrough between the US and Iran. The memorandum also carries the signatures of US President Donald Trump and Pezeshkian.

The premier, in his statement issued by PMO today, said the government was immediately passing on the benefit of improved regional economic conditions and lower global oil prices to the public, adding that, "Whatever promise was made to the nation, Alhamdulillah, we are about to fulfil it."

 

“We are well aware of the difficulties faced by the people; you have demonstrated exemplary patience and resilience in these challenging circumstances. We are deeply grateful to the people for standing by the government during these difficult times,” he said.

Read More: PM orders immediate fuel price relief for consumers 

The prime minister further added that from the very beginning of the crisis, the government had made every effort to reduce oil prices using its own resources.

“The federal government, through development budget allocations and savings achieved through austerity measures, utilised Rs129 billion to provide maximum possible relief to the people across the country from the unprecedented increase in oil prices,” he added.

اسلام آباد: 19 جون 2026ء

وزیرِ اعظم محمد شہباز شریف کا پاکستان کی ثالثی کی بدولت خطے و عالمی امن کے قیام کے بعد تیل کی قیمتوں کے حوالے سے اہم بیان

وزیرِ اعظم نے کہا کہ خطے میں معاشی صورتحال میں بہتری آنے اور تیل کی قیمتوں میں کمی کا فائدہ فوری طور پر عوام کی جانب منتقل کررہے… pic.twitter.com/868NMNnD6E

— Prime Minister's Office (@PakPMO) June 19, 2026

The prime minister further said that during a period of regional economic instability, when some countries were resorting to fuel rationing, Pakistan avoided an energy crisis due to better planning.

“Thanks to effective measures, there were no lines, no long queues, and the people did not face any shortage of petroleum products. To keep the national economy stable, the federation and the provinces extended full cooperation, for which I am grateful to the chief ministers of the provinces,” he said.

The prime minister said that the reductions in global oil prices were being directly passed on to the people and that the government would continue efforts to maintain economic stability and reduce inflation.

“Throughout the crisis, not only was austerity adopted at the governmental level, but subsidies were also provided to the underprivileged segments,” he said.

PM Shehbaz said that providing maximum relief to the people remained the government’s top priority. He said peace in the Middle East had become possible due to Pakistan’s mediation efforts.

Also Read: Oil falls to 3-1/2-month low after US, Iran sign ceasefire deal

“Allah Almighty bestowed honour upon Pakistan, and the Islamabad Memorandum of Understanding was signed, which is a historic document,” he said.

The prime minister further said that Chief of Army Staff and Chief of Defence Forces Field Marshal Asim Munir deserved special congratulations, adding that the peace agreement was made possible due to his “tireless efforts and professional expertise.”

He also praised Deputy Prime Minister and Foreign Minister Ishaq Dar, Interior Minister Mohsin Naqvi, and other members of the government team for their role in peace efforts.

PM Shehbaz lauded the economic team, including Finance Minister Muhammad Aurangzeb, Planning Minister Ahsan Iqbal, Economic Affairs Minister Ahad Khan Cheema, Petroleum Minister Ali Pervaiz Malik, and senior officials, saying they made commendable efforts during the economic crisis.

Earlier in the day, oil prices fell as prospects brightened for more supply after oil tankers began moving ​through the reopened Strait of Hormuz following a peace deal between the ‌US and Iran.

By 0328 GMT, Brent crude futures fell 43 cents, or 0.54%, to $79.42 a barrel and US West Texas Intermediate crude slipped 17 cents, or 0.22%, to $76.43 a barrel, with the front-month July contract ​expiring on Monday.

The more actively traded August contract was down 30 cents at $75.55 ​a barrel.

On Thursday, both benchmarks touched their lowest since early March as several ⁠tankers, including three Saudi-flagged vessels carrying 6 million barrels of crude, sailed through the strait ​hours after the presidents of Iran and the United States signed an interim deal to end ​their war.

Analysts expect the deal to release more than 85 million barrels of oil stranded in the Middle East Gulf into global markets. The agreement also includes the lifting of US sanctions on Iranian oil, which would ​further swell supply.

As global oil prices surged, the government raised domestic fuel prices by more than 50%. Petroleum product rates were increased twice during the first week of March, with the government stating that the hikes exceeded the increase in international market prices. The sharpest increase, however, was witnessed in April.

In April, the government raised the petrol price by Rs137 per litre, taking it to a record Rs458.4 per litre. Days later, PM Shehbaz announced an Rs80 per litre reduction in the petroleum levy on petrol, bringing its price down to Rs378 per litre.

Last week, the government cut the price of petrol by Rs4 per litre and that of high-speed diesel by Rs2 per litre for the next week. Earlier on June 5, the government reduced the price of petrol by Rs4 per litre. Before that, the government reduced the prices of petrol and diesel by Rs22 per litre, describing the move as an “Eid gift” for the public.