ISLAMABAD: Pakistan’s government on Monday slashed the prices of petrol and high-speed diesel (HSD) by Rs4.08 and Rs2.45 per litre, respectively, following changes in global oil prices amid renewed tensions in the Middle East.
After the latest revision, petrol will be available at Rs331.95 per litre, while the price of high-speed diesel will fall to Rs389.93 per litre. The new prices will take effect from August 4 (Tuesday), according to a notification issued by the Petroleum Division.
The latest reduction comes after fuel prices witnessed a sharp increase earlier this year due to international market volatility following the outbreak of the US-Iran conflict on February 28.
Diesel prices had climbed to a record Rs520.35 per litre on April 3, after rising from Rs281 per litre. Petrol prices also reached a peak of Rs458.41 per litre on the same date, after increasing from Rs266 per litre in early March.
Earlier, Petroleum Minister Ali Pervaiz Malik announced that fuel prices would be reviewed on a daily basis due to fluctuations in international oil markets. The decision followed the government’s move to shift from weekly fuel price adjustments to a more frequent pricing mechanism amid concerns over possible disruptions in global oil supplies.
The petroleum minister said the federal cabinet and prime minister had assigned the Oil and Gas Regulatory Authority (OGRA) the responsibility of determining fuel prices based on international market trends.
Petrol remains a key fuel for private vehicles, motorcycles, rickshaws and small transport, meaning price changes directly affect household expenses, particularly for middle- and lower-income groups.
High-speed diesel is widely used in heavy transport, agricultural machinery, power generation and industrial operations, making its price an important factor influencing transportation costs and inflation.
Oil prices tumble
Oil prices tumbled Monday and stocks mostly rose after US President Donald Trump said he was preparing for new talks with Iran aimed at ending the war in the Middle East.
Crude futures slid more than six percent, even though Iran denied that any negotiations were taking place and earlier truces have failed.
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While tech stocks are still under pressure in Asia on concerns of over-investment, wider stock market indexes were mostly higher in New York and Europe as the lower oil prices raise the prospect of lower interest rates.
“Trump’s decision to restart talks with Iran has knocked a large chunk out of the oil-risk premium and given bonds room to rally,” said Patrick Munnelly, market strategist at the Tickmill Group.
Oil’s sharp fall “has eased the immediate inflation scare”, he said.
