ISLAMABAD:
The federal government on Friday announced a significant reduction in oil prices, reducing both petrol and high-speed diesel by Rs22 per litre.
According to a release from the Ministry of Energy’s Petroleum Department, high-speed diesel has been reduced by Rs 22 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 the relief would be passed on to the public as soon as fiscal space became available. This commitment, officials said, has now been fulfilled and is being presented as an “Eidul Azha gift” to 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 and reiterated that easing the burden on consumers remains a top priority for the government.
Officials further said that during the recent global oil price hike, despite rising international prices since March, the government avoided passing on the full impact to domestic consumers by providing subsidies of over 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 filling stations, Pakistan managed to ensure uninterrupted availability of petroleum products through timely policy interventions.
The government maintained that efforts continue to balance fiscal constraints with public relief while ensuring a stable fuel supply across the country.
According to 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 spirit (petrol) is now Rs 381.78. reduced from Rs.403.78.
Oil falls on ceasefire prospects
Oil prices fell again on Friday on investor optimism that the United States and Iran would reach an agreement 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 on Iran on Wednesday, countered by the Revolutionary Guards’ targeting of a US airbase in the region.
By Thursday evening, negotiators had reached an agreement to extend their fragile ceasefire for 60 days pending approval from President Donald Trump, US sources told AFP.
While details of the possible deal are scarce, “oil traders are optimistic that the end may be in sight for disruption in the region”, said Derren Nathan, head of equity research at Hargreaves Lansdown.
“However, the market’s patience could be tested if a deal is not agreed by early June, and this could have major implications for oil prices and the global equity market rally,” said Kathleen Brooks, director of research at XTB.
(With input from agencies)
