Muhammad Imad Abbas

ISLAMABAD: Pakistan on Friday announced one of its largest fuel price reductions in recent years, lowering petrol by Rs74 ($0.25) per liter and diesel by Rs67 ($0.24) per liter as global oil markets steadied following the end of the US-Iran conflict. The government reduced petrol prices to Rs299 ($1.08) per liter and diesel prices to Rs311 ($1.12) per liter. The move comes days after the signing of the Islamabad Memorandum of Understanding between the United States and Iran, which ended 110 days of conflict that disrupted regional trade, threatened energy supplies and fueled volatility in global oil markets. For Pakistan, the reduction represents the first major economic dividend from the easing of tensions in the Middle East. During the conflict, Islamabad faced the same challenge confronting many Asian energy-importing nations: protecting consumers from rising fuel costs while operating under tight fiscal constraints.&nbsp; Unlike wealthier economies that relied on larger financial reserves and extensive subsidy programs, Pakistan sought to cushion the impact through austerity measures, targeted support and efforts to maintain uninterrupted fuel supplies. According to a statement issued by the Prime Minister&#39;s Office, the government utilized Rs129 billion ($455.8 million) generated through spending adjustments and austerity measures to shield consumers from the effects of rising fuel prices during the crisis. &ldquo;The benefit of improved economic conditions in the region and declining oil prices is being passed on immediately to the public,&rdquo; Prime Minister Shehbaz Sharif said in the statement. &ldquo;Since the beginning of this crisis, we have made every possible effort to reduce fuel prices using our available resources.&rdquo; The Prime Minister&#39;s Office said Pakistan avoided the shortages and supply disruptions experienced in some markets during the regional crisis.&nbsp; &ldquo;Thanks to effective measures, there were no fuel shortages, no long queues, and no disruption in the supply of petroleum products to the public,&rdquo; the statement said. PM Sharif also linked the latest fuel-price reduction to broader diplomatic efforts aimed at easing regional tensions.&nbsp; &ldquo;By the grace of Allah, peace became possible amid tensions in the Middle East due to Pakistan&#39;s mediation efforts,&rdquo; he said. The government said it would continue pursuing policies aimed at maintaining economic stability, reducing inflation and providing relief to consumers, while presenting the fuel-price reduction as evidence that lower global oil prices are beginning to translate into benefits for ordinary Pakistanis.

Economy

Foreign Affairs

Islamabad says prudent economic management and sustained regional diplomacy enabled it to protect consumers and deliver relief despite months of energy-market uncertainty, as US and Iran advance technical negotiations under a 60-day implementation framework.

Articles tagged with "Pakistan petrol"

Pakistan cuts fuel prices as oil markets stabilize after Islamabad MoU

Pakistan cuts fuel prices as oil markets stabilize after Islamabad MoU