Govt cuts petrol, diesel by Rs2 per litre as global oil slide deepens

ISLAMABAD: The federal government has slashed petrol and high-speed diesel (HSD) prices by Rs2 per litre for the next fortnight, it notified on Wednesday, as international oil markets are currently spiralling down on US tariff concerns.

Oil prices extended declines on Wednesday and were set for their largest monthly drop in almost three and a half years as the global trade war eroded the outlook for fuel demand, while concern over mounting supply also weighed.

Brent crude futures were down 77 cents, or 1.2%, at $63.48 a barrel by 1305 GMT. US West Texas Intermediate crude futures dropped 74 cents, also 1.2%, to $59.68.

The revised rates, based on recommendations from the Oil and Gas Regulatory Authority (OGRA) and relevant ministries, will come into effect from May 1, 2025.

After the cut, petrol will be sold at Rs252.63 per litre, down from Rs254.63, while high-speed diesel will now cost Rs256.64 per litre, compared to its previous rate of Rs258.64.

The move follows minor adjustments in global oil prices and exchange rate stability, with the government passing on the impact to consumers as part of its biweekly price review mechanism.

Fuel prices are revised every 15 days, taking into account international market trends and exchange rate fluctuations.

For the previous fortnight, the federal government announced that fuel prices would remain unchanged, and any savings would be diverted toward infrastructure projects.

Prime Minister Shehbaz Sharif, chairing a federal cabinet meeting, stated that the funds would be used to dualise the N-25 highway linking Chaman, Quetta, Khuzdar, and Karachi, upgrading it to motorway standards.

Additionally, the savings will help finance the construction of the M-6 and M-9 motorways (Sukkur-Hyderabad and Hyderabad-Karachi segments) and the completion of Phase 2 of the Kachhi Canal project to promote agricultural development in Balochistan.