Pakistan Cuts Petrol, Diesel Prices by Rs 1.97, but Rates Still Above Pre-Crisis Levels
ISLAMABAD — The government of Pakistan has reduced the retail prices of petrol and diesel by Rs 1.97 per litre for the upcoming week, citing a decline in global oil prices following the easing of tensions in West Asia.
The Ministry of Petroleum announced the decision on Saturday, stating that the reduction aims to pass on the benefits of lower international crude prices to consumers. The new rates are effective from March 1.
After the latest adjustment, high-speed diesel (HSD), widely used in freight transportation, is now priced at PKR 309.50 per litre. Petrol (motor gasoline) has been cut to PKR 299.63 per litre, according to official notifications.
Despite the reduction, fuel prices in Pakistan remain significantly higher than before the recent spike in West Asia tensions. On February 28, before the conflict escalation, petrol was priced at PKR 281 per litre — about Rs 18.63 lower than the current rate.
The Shehbaz Sharif government has faced criticism for not fully passing on the global price drop to consumers. Officials defended the decision, saying that the cut would ease the burden on households and businesses while maintaining fiscal stability.
The Pakistan government reviews fuel prices fortnightly, adjusting them in line with international market trends and exchange rate fluctuations. The latest reduction is the first in several weeks, following a period of rising prices caused by geopolitical tensions in the Middle East.
Analysts note that global oil prices have softened after reports of potential de-escalation between Iran and Israel, but remain volatile due to ongoing supply concerns. Pakistan imports most of its crude oil, making its domestic prices sensitive to global shifts.
The reduction comes as a relief for consumers grappling with high inflation. However, many citizens expressed disappointment that the cut is not enough to match pre-crisis levels. The government has indicated that further reductions may be possible if global prices continue to decline.
