Pakistan trims petrol and diesel prices amid fuel austerity measures

In a recent notification, the government announced a small reduction in the retail price of petrol and high-speed diesel, keeping existing tax and duty charges unchanged. Alongside the price cut, officials introduced austerity measures that require fuel markets to close earlier in the evening and halve the fuel quota for government vehicles for a three-month period. Prime Minister Shehbaz Sharif also launched a relief programme targeting motorcycles, auto-rickshaws and vehicles up to 800cc to mitigate rising global oil costs.

Earlier this year, fuel prices had surged following renewed Middle East tensions, prompting weekly revisions and a shift to daily price fixing. The petroleum ministry confirmed that the Oil and Gas Regulatory Authority will now determine daily fuel rates based on international market movements. Petrol primarily serves private transport and two-wheelers, while diesel fuels heavy transport, power generation and large generators, making the price adjustments significant for middle-income consumers.