What happened
Prime Minister Shehbaz Sharif announced on Friday that the government was cutting the price of petrol by Rs74 per litre and high-speed diesel (HSD) by Rs67 per litre, passing on a fall in international oil prices to consumers.
In a statement from the Prime Minister’s Office, Sharif said the price of petrol would fall from Rs373 to about Rs299 per litre and diesel from Rs378 to about Rs311 per litre. Dawn reported that, once notified, petrol would stand at Rs299.78 and HSD at Rs311.78. The formal notification from the Oil and Gas Regulatory Authority had not been issued when the announcement was made.
The prime minister said the government was “immediately passing on the benefit of improved regional economic conditions and lower global oil prices”, adding that “whatever promise was made to the nation, Alhamdulillah, we are about to fulfil it.”
Why it matters
The cut follows an unprecedented run-up in fuel costs during the war that began in late February 2026 and disrupted shipping through the Strait of Hormuz. At the peak on 3 April, petrol reached Rs458.4 and diesel Rs520.35 per litre, before the government slashed the petroleum levy by Rs80 to bring petrol down to Rs378. Prices had been revised weekly through the crisis, including a Rs135 diesel cut and Rs12 petrol cut in April. A Rs4 cut in petrol to Rs377.78 a litre from 6 June had been the fourth straight weekly reduction.
Sharif said the federal government had used Rs129 billion from development budget allocations and austerity savings to cushion the impact of higher oil prices. He said Pakistan had avoided the fuel rationing and queues seen elsewhere in the region, and thanked the provinces for cooperating with the federation.
He linked the relief to the US-Iran “Islamabad Memorandum of Understanding” signed on 18 June, describing it as a historic document that had eased regional tensions, and thanked Chief of Defence Forces and Chief of Army Staff Field Marshal Asim Munir, Deputy Prime Minister and Foreign Minister Ishaq Dar, Interior Minister Mohsin Naqvi and the economic team for their roles.
What is still uncertain
The announced reductions had not been formally notified by OGRA at the time of publication, and the prime minister did not indicate whether the weekly price-revision mechanism would continue.
