ISLAMABAD:
The federal government on Friday announced a significant reduction in oil prices, cutting both petrol and high-speed diesel by Rs 22 per litre.
According to a notification issued by the Petroleum Division of the Ministry of Power, high-speed diesel has been reduced by Rs 22 per litre, while motor petrol has also been reduced by the same amount for next week.
Prime Minister Shehbaz Sharif had earlier promised that the relief would be passed on to the public as soon as fiscal space was available. That commitment, officials said, has now been fulfilled and will be presented as an “Eidul Azha gift” to the public on the third day of the festival.
The Prime Minister also noted that similar relief was provided the previous week when fuel prices were reduced, reiterating that easing the burden on consumers remains one of the government’s top priorities.
Officials further said that during the recent global oil price surge, despite the rise in international rates since March, the government avoided passing on the full impact to domestic consumers by providing subsidies exceeding Rs 130 per liter over time, thereby maintaining price stability.
They added that at a time when several countries in the region were facing 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 continuous efforts are being made to balance fiscal restrictions with public relief while ensuring a steady supply of fuel across the country.
As per the official notification, the revised ex-depot price of high-speed diesel has been fixed at Rs 380.78, down from Rs 402.78, while motor petrol (petrol) now stands at Rs 381.78, down from Rs 403.78.
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 were briefly dashed by new US military strikes against Iran on Wednesday, countered by the Revolutionary Guard attack on a US air base in the region.
On Thursday night, negotiators were closing in on a deal to extend their fragile ceasefire for 60 days, pending approval from President Donald Trump, US sources told AFP.
Although details on the potential deal are scarce, “oil traders are taking an optimistic view that an end to disruption in the region could be in sight,” said Derren Nathan, head of equity research at Hargreaves Lansdown.
However, “the market’s patience may be tested if a deal is not reached by early June, and this could have big ramifications for the oil price and the global stock market rally,” said Kathleen Brooks, head of research at XTB.
(With contributions from Agencies)
