Prime Minister Shehbaz Sharif announced a reduction in petrol prices by Rs 74 per litre and high-speed diesel by Rs 67 per litre on Friday [1].

This move comes as the government seeks to mitigate the cost of living for citizens by passing on the benefits of declining global oil prices. The shift in pricing is tied directly to a recent peace deal between the U.S. and Iran, which has lowered tensions in the energy market [2].

According to government reports, the new price for petrol is Rs 299.78 per litre [3]. High-speed diesel has been adjusted to Rs 311.78 per litre [3]. These reductions aim to provide immediate relief to transporters and the general public in Islamabad, and across the country [5].

There are discrepancies in reporting regarding the exact amount of the price cut. While some sources cite the Rs 74 and Rs 67 reductions [1], other reports indicate a lower cut of Rs 22 per litre for both petrol and diesel [4]. Some of these lower figures were reported as early as May 29 [5].

Despite the conflicting figures, the prime minister said the goal is to ensure that the benefits of the international market reach the consumer. The administration said that the U.S.-Iran peace deal has created a more stable environment for oil production and distribution [2].

This is the first significant fuel price adjustment since the peace deal was reached. The government intends to monitor global trends to determine if further adjustments are necessary to stabilize the economy [2].

“Prime Minister Shehbaz Sharif announced a reduction in petrol prices by Rs 74 per litre”

The reduction in fuel costs in Pakistan serves as a domestic economic response to a geopolitical shift. By linking local pump prices to the U.S.-Iran peace deal, the government is attempting to curb inflation and reduce the operational costs of transport and logistics, which typically drive up the price of essential goods.