ISLAMABAD (Dunya News) – Prime Minister Shehbaz Sharif has announced a significant reduction in fuel prices during a televised address to the nation, unveiling one of the steepest diesel price cuts in recent months alongside a petrol price decrease.
Speaking from Islamabad on Friday night, the premier described the moment as “historic”, highlighting both economic relief for citizens and shifting regional dynamics in the Gulf.
Sharif confirmed that the price of diesel has been reduced by Rs135 per litre, bringing the new rate down to Rs385 per litre. Petrol prices have been cut by Rs12 per litre, lowering the rate to Rs366 per litre. The revised prices will come into effect from midnight.
The prime minister said the government had fulfilled its commitment to pass on the benefit of declining global oil prices to the public. He noted that despite intense inflationary pressures in recent months, the administration had prioritised relief measures to ease the burden on households and businesses.
Sharif revealed that subsidies amounting to Rs129 billion had already been provided to support consumers. He added that recommendations from the Oil and Gas Regulatory Authority (OGRA) had been reviewed but ultimately not adopted in full, as the government opted for a more substantial reduction in diesel prices.
The sharp cut in diesel is expected to have widespread implications across key sectors, particularly transport, agriculture and goods delivery, where diesel remains the primary fuel. The reduction is likely to lower operating costs for public transport, freight services and essential supply chains.
Petrol prices, while reduced by a smaller margin, are also expected to provide some relief to private motorists and urban commuters. The government confirmed that subsidies for motorcycles, public transport and freight vehicles will continue, ensuring targeted support for lower- and middle-income groups.
US-Iran talks in Islamabad
During the address, the Prime Minister also pointed to broader regional developments, stating that tensions in the Gulf had eased and that parties previously in conflict had shown willingness to engage in dialogue. He thanked the leadership of Iran and the United States for agreeing to a temporary ceasefire and accepting Pakistan’s invitation for talks in Islamabad.
Sharif acknowledged the role of Deputy Prime Minister Ishaq Dar and Chief of Defence Forces and Chief of Army Staff General Syed Asim Munir in facilitating diplomatic efforts, describing their contribution as pivotal in helping de-escalate tensions.
He said the development marked a moment of pride not only for Pakistan but for the wider Muslim world, as the country prepares to host high-level diplomatic engagement alongside managing domestic economic challenges.