The federal government on Friday maintained the prices of petrol and high-speed diesel (HSD) at existing levels for the upcoming week, according to a press release from the Petroleum Division. Petrol remains at Rs299.5 per litre, while HSD stays at Rs311.47 per litre. This decision comes despite a continuous decline in international oil markets, where crude prices dropped 2% on Friday and were on track for steep weekly losses. The decline is attributed to easing supply concerns as more stranded oil tankers exited the Strait of Hormuz, although a cargo vessel was hit near Oman on Thursday.
Previous Reductions and Recent Trends
Last week, the government announced significant reductions in petroleum prices: petrol was cut by Rs74 per litre and HSD by Rs67 per litre. The prime minister stated that the government was immediately passing on the benefits of improved regional economic conditions and lower global oil prices to the public. He added, 'Whatever promise was made to the nation, Alhamdulillah, we are about to fulfil it.' The reductions were part of efforts to maintain economic stability and reduce inflation.
Historical Context of Price Fluctuations
Earlier this year, global oil prices surged following the US-Iran conflict, prompting the government to raise domestic fuel prices by over 50%. During the first week of March, petroleum product rates were increased twice, with the government noting that the hikes exceeded the rise in international market prices. The sharpest increase occurred in April, when petrol prices were raised by Rs137 per litre to a record Rs458.4 per litre. Days later, the prime minister announced an Rs80 per litre reduction in the petroleum levy on petrol, bringing the price down to Rs378 per litre.
On June 12, the government cut petrol prices by Rs4 per litre and HSD by Rs2 per litre for the following week. Earlier, on June 5, a similar Rs4 per litre reduction was applied to petrol. Prior to that, the government reduced petrol and diesel prices by Rs22 per litre, describing the move as an 'Eid gift' for the public.
Impact on Consumers and Economy
The unchanged prices provide temporary relief to consumers, who have faced volatile fuel costs over the past months. However, the government's decision to hold prices steady despite falling global rates may limit potential savings for the public. The prime minister has reiterated the government's commitment to passing on global price reductions directly to citizens, but the current static pricing suggests a cautious approach amid ongoing economic challenges.
