ISLAMABAD: In a major relief for inflation hit consumers, Prime Minister Shehbaz Sharif on Friday announced a dramatic reduction in fuel prices, slashing diesel by Rs135 per litre and petrol by nearly Rs12 per litre for the week ending April 17.

The ex depot price of high speed diesel has been brought down to Rs385.54 per litre from Rs520.35, marking a sharp 26 percent decline. Petrol prices have also been reduced to Rs366.58 per litre from Rs378.41, offering modest but meaningful relief to motorists across the country.

Kerosene and light diesel oil prices also saw notable cuts. Kerosene dropped by Rs17.33 to Rs450.15 per litre, while light diesel oil declined by Rs25.31 to Rs369.72, easing costs for low income households and small scale industries dependent on these fuels.

Officials revealed that the steep decline in diesel prices was not solely due to falling global oil rates but also a correction in the pricing mechanism. The revised formula addressed disproportionate gains enjoyed by local refineries due to price parity with Middle Eastern imports, resulting in a more balanced and consumer friendly rate.

Despite the reductions, the government has maintained existing tax rates on petroleum products. Diesel continues to carry around Rs39 per litre in taxes, while petrol remains heavily taxed at approximately Rs107 per litre, reflecting the state’s reliance on fuel revenues.

The prime minister rejected proposals to retain part of the price drop to offset subsidy costs, stating it was his duty to pass the full benefit to the public. He emphasized that lower diesel prices would support farmers during wheat harvesting and help control food inflation, reaffirming his commitment to shielding citizens from economic pressures.