ISLAMABAD — The federal government announced a sharp reduction in fuel prices late Wednesday, bringing relief to motorists as the cost of petrol dropped by Rs 8.50 per liter.
The new price, effective from midnight, stands at Rs 268.45 per liter. High-speed diesel also saw a downward adjustment, falling by Rs 6.70 to reach Rs 272.15 per liter.
The decision follows a sustained decline in international oil markets over the past fortnight. With global crude benchmarks softening, the Finance Division finally passed the benefit down to the consumer, reversing a trend of hikes that had pushed domestic inflation to a breaking point.
For the average commuter, the move offers a rare bit of breathing room. Transport costs have been the primary driver of Pakistan’s stubborn inflation rate, and a dip at the pump often signals a cooling effect on the prices of essential goods.
“The international market trends were clear,” said a senior official at the Petroleum Division. “We’ve adjusted the domestic prices to reflect the current landed cost of imports.”
Despite the cut, the government remains under pressure. The International Monetary Fund (IMF) has consistently pushed for the full pass-through of global price fluctuations, often demanding that the government maintain high petroleum development levies to plug budget gaps. This latest reduction suggests the government found enough fiscal space to offer relief without violating its core revenue targets.
While the reduction is welcome, critics point to the massive tax component still embedded in every liter. Even with this drop, the base price of fuel remains heavily weighed down by the Petroleum Development Levy (PDL) and General Sales Tax (GST), which remain the state’s most reliable revenue streams.
Whether this trend holds depends entirely on the volatility of the Middle East and the strength of the rupee. For now, the decline provides a temporary cushion for a public exhausted by years of rising living costs.
