Petrol and Diesel: While petrol and diesel prices are being raised in many countries around the world, including India, in Pakistan, petrol and diesel prices are being steadily reduced. A significant price cut was also made yesterday.

Petrol and diesel prices in Pakistan cut by Rs 22

Petrol and Diesel Price Cut: Amidst the Iran-US conflict, the Hormuz blockade, and tensions in West Asia, petrol and diesel prices are rising across the world, including India. Meanwhile, petrol and diesel prices are steadily falling in India's neighboring country, Pakistan.

The government gave Eid gifts

Shahbaz Sharif's government in Pakistan announced a significant price cut on petrol and high-speed diesel (HSD) on May 29th. The government has further reduced petrol and diesel prices on the occasion of Eid al-Adha, calling it an "Eid gift." Yesterday, the prices of both petrol and high-speed diesel in Pakistan were reduced by a total of 22 rupees.

Show Quick Read

Key points generated by AI, verified by newsroom

Price reduced for the third consecutive time

• First, on May 15, the prices of petrol and high-speed diesel were reduced by Rs 5 per liter.
• Then on May 22, under the weekly review, the price of petrol was reduced by Rs 6 per liter and high-speed diesel by Rs 6.80 per liter.
• The third biggest price cut was made on May 29th, on the occasion of Eid. The government reduced the prices of both by ₹22.

Overall, petrol prices in Pakistan have become cheaper by ₹33 per liter in May, while diesel prices have been reduced by ₹33.80.

Why were the rates reduced?

The people of Pakistan were suffering from inflation. In March and April, fuel prices surpassed ₹414 per liter for the first time. This made transportation and freight extremely expensive. People took to the streets, and protests erupted everywhere. To save the government and maintain domestic political stability, the government reduced prices. In this regard, the government instructed officials to reduce some of the profits or taxes of oil companies on the occasion of Eid and provide relief directly to the public.  

There's another reason for the price reduction. Pakistan is currently following International Monetary Fund (IMF) regulations. The IMF stipulated a fixed levy on every liter of oil. Now, since the government is meeting its tax collection target for the current fiscal year, it is passing on the benefits of the drop in international crude oil prices to consumers rather than keeping them as taxes.