“The new fuel prices will take effect from April 11,” announced Prime Minister Shehbaz Sharif during a press briefing on the recent adjustments in fuel pricing.
The government has implemented a reduction in petrol and diesel prices, with petrol seeing a decrease of Rs11.83 per litre, bringing the new price to Rs366.58 per litre. More significantly, the price of High-Speed Diesel (HSD) has been cut by Rs134.81 per litre, now priced at Rs385.54 per litre.
This decision comes as global crude oil prices have declined, with Brent crude futures decreasing by $15.24 to $94.03 per barrel and West Texas Intermediate (WTI) crude futures dropping by $18.33 to $94.19 per barrel. The government has cited this decline as a critical factor in creating fiscal space for these price reductions.
Prime Minister Sharif emphasized the importance of passing these savings on to the public, stating, “I rejected a proposal to divert fuel price relief towards government expenditure and insisted that the full benefit be passed on to the public.”
The reduction in diesel prices is particularly significant due to its widespread use across key sectors of the economy, including transport and agriculture. Sharif noted, “Providing relief to farmers and reducing input costs remained a key priority of my government.”
Additionally, the government has reduced the price of kerosene oil by Rs17.33 per litre, bringing it to Rs450.15. This move is part of a broader strategy to control inflation, with the government having spent Rs129 billion to provide relief to the public.
Experts believe that the extraordinary reduction in HSD prices may help curb inflationary pressures, which have been a concern for many consumers. The government aims to support both consumers and businesses through these measures.
The recent decline in oil prices has been accelerated by geopolitical developments, particularly after the United States temporarily halted military action against Iran. This situation has contributed to a more favorable environment for price adjustments in Pakistan.
As the new prices take effect, the government is expected to monitor the impact on the economy and consumer behavior closely. Further adjustments may be considered depending on global oil market trends.