Prime Minister Shehbaz Sharif on Friday announced a Rs. 32.12/liter reduction in the consumer price of high-speed diesel, but kept the price of petrol unchanged for the next week.
In a statement, the Prime Minister’s Office said the new diesel price has been set at Rs. 353.43/liter, down from Rs. 385.54/liter. The prime minister further emphasized that the government would pass on the impact of declining global oil prices to the public as soon as possible.
The Petroleum Division, in its official notification, confirmed the new rates, adding they would remain in place until April 24.
Tax rates on all petroleum products remain unchanged, with approximately Rs. 36/liter on diesel and Rs. 107/liter on petrol. The latter includes Rs. 81 in the form of a petroleum development levy, Rs. 24 customs duty and Rs. 2.5 climate levy.
Last week, amid progress on peace talks between Iran and the United States and global oil rates’ decline, the prime minister had announced a Rs. 12/liter cut to the petrol price and Rs. 135/liter reduction to the diesel rate.
The latest global reduction follows a statement from Iran’s foreign minister announcing the reopening of the vital Strait of Hormuz shipping lane for commercial vessels. U.S. President Donald Trump has further claimed Iran has agreed to never close the strait again.
Diesel prices in Pakistan peaked at Rs. 520.35/liter after the breakout of the Middle East conflict, raising fears of rampant inflation, as it primarily used in the transport sector and for agricultural purposes.