ISLAMABAD: Prime Minister Shehbaz Sharif announced a significant reduction of Rs135 per litre in high-speed diesel (HSD) and Rs12 per litre in petrol prices on Friday, effective April 11, 2026, extending much-needed financial relief to millions of consumers grappling with sustained inflationary pressures.
Following the announcement, the Petroleum Division officially notified the revised rates, bringing HSD down from Rs520.35 to Rs385.54 per litre and petrol from Rs378.41 to Rs366.58 per litre, the steepest single-day diesel price cut in recent memory.
The Prime Minister attributed the decision to a decline in global oil prices, describing it as his “moral and political responsibility” to pass the full benefit on to the public. Notably, he disclosed that he had been advised to retain a portion of the savings to offset the Rs129 billion subsidy extended by the government in preceding weeks, a proposal he firmly rejected.
The announcement’s timing is particularly significant for Pakistan’s agricultural sector, as it coincides with the ongoing wheat harvest season. A reduction in diesel prices is expected to lower farm mechanisation costs directly, helping safeguard both farmer incomes and food affordability for the general public. Broader economic benefits are also anticipated, with logistics and public transport costs likely to ease in the near term.
The calming of global energy markets follows a two-week ceasefire between Iran and the United States, brokered with Pakistan’s diplomatic involvement. The truce has temporarily eased concerns over supply disruptions through the Strait of Hormuz, a critical corridor for global oil trade.
It is worth noting that existing levies remain intact, including a petroleum levy of Rs80.61 per litre on petrol and a Rs2.50 per litre climate support levy across multiple fuel types. The government has not indicated how long the revised prices will remain in effect.
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