ISLAMABAD: Prime Minister Shehbaz Sharif has announced a significant reduction in petroleum prices, offering much-needed relief to consumers across the country. For the week ending April 17, the price of high-speed diesel (HSD) has been cut by Rs135 per litre, while petrol has been reduced by Rs12 per litre.
The new ex-depot price of HSD stands at Rs385.54 per litre, down from Rs520.35 — marking a substantial 26% decrease. Petrol prices have been lowered to Rs366.58 per litre from Rs378.41, reflecting a drop of Rs11.83.
Other petroleum products also saw reductions, with kerosene decreasing by Rs17.33 to Rs450.15 per litre, and light diesel oil (LDO) dropping by Rs25.31 to Rs369.72 per litre.
Officials indicated that the sharp decline in diesel prices was not solely due to easing global oil rates following the ceasefire between the United States and Iran, but also due to a correction in the pricing formula that previously benefited local refineries. The revised mechanism has narrowed the price gap between locally produced and imported diesel.
Despite the reductions, government tax rates on petroleum products remain unchanged. Currently, approximately Rs39 per litre is charged on HSD, while petrol carries a tax burden of around Rs107 per litre, including petroleum levy, customs duty, and climate support levy.
In a televised address ahead of upcoming diplomatic talks, the prime minister stated that he rejected proposals to retain part of the price decline to offset the Rs129 billion spent on fuel subsidies. Emphasizing public welfare, he said it was his “moral and political duty” to pass on the full benefit to citizens.
He further highlighted that the reduction in diesel prices would particularly support farmers during the ongoing wheat harvest season and help curb food inflation. The government’s targeted subsidy initiatives for two-wheelers, public transport, and agriculture will also continue.
The latest price cut comes after a period of sharp increases triggered by geopolitical tensions following the US-Israel attack on Iran Feb 2026, which had pushed fuel prices to Rs266 per litre for petrol and Rs281 for diesel earlier this year.
Story by Khaleeq Kiani
