ISLAMABAD: Prime Minister Shehbaz Sharif said Friday the government will announce a significant reduction in petroleum prices following a drop in global oil prices after the United States and Iran reached a peace deal.
“We had promised that we would bring the price of petroleum products down and repay each penny to the people,” Sharif said during an address to the National Assembly. “So today, after our weekly review, we will announce a significant reduction.”
The prime minister praised his ministers for managing the oil crisis. In the previous weekly review, the government cut petrol and diesel prices by Rs4 and Rs2 per litre, respectively, for the week ending June 19.
Sharif also thanked provincial chief ministers for supporting the federal government’s efforts to provide relief through targeted subsidies. He reminded lawmakers that when oil prices surged, the government spent approximately Rs128 billion to cushion the public from the impact.
Oil prices declined Friday as supply prospects improved after tankers began moving through the reopened Strait of Hormuz. Pakistan served as the main mediator in the peace agreement between Washington and Tehran.
The government has been reviewing petroleum prices weekly since the U.S.-Israeli conflict with Iran began Feb. 28. Previously, prices were reviewed every two weeks.
When the conflict started, petrol cost Rs258.17 per litre. The price later spiked to Rs458.41 before retreating to just above Rs370 per litre in recent days. Diesel, which sold for Rs275.7 per litre at the start of the war, jumped to Rs520.35 per litre.
The closure of the Strait of Hormuz, a critical chokepoint through which about one-fifth of the world’s oil and gas supplies pass during peacetime, triggered a global fuel crunch and drove inflation higher in Pakistan and worldwide, officials said.
Petrol is primarily used by commuters in small vehicles, rickshaws and motorcycles. Higher fuel prices disproportionately affect middle- and lower-middle-class households that rely on petrol for daily travel.
High-speed diesel, used predominantly in heavy transport vehicles, trucks, buses, trains and agricultural machinery, is considered a key driver of inflation due to its widespread use in the transport sector.
National Assembly adopts resolution lauding Pakistan’s role in peace deal
Separately, the National Assembly unanimously passed a resolution welcoming the cessation of hostilities and the signing of a framework agreement for peace and stability between the United States and Iran.
The resolution, moved by Federal Minister for Law and Justice Azam Nazeer Tarar, commended Pakistan’s role in facilitating the diplomatic breakthrough.
“The National Assembly of Pakistan notes with immense satisfaction and pride the landmark diplomatic breakthrough in the form of cessation of hostilities and signing of an agreement on a framework for peace and stability between the United States of America and the Islamic Republic of Iran,” the resolution read.
The measure also recognized the conflict’s negative impact on regional peace, global economic stability and energy security.
Lawmakers placed on record their appreciation for Sharif, Deputy Prime Minister and Foreign Minister Ishaq Dar, Interior Minister Mohsin Naqvi and Field Marshal Asim Munir, along with the entire negotiating team, for their efforts in advancing the peace process.
The resolution said their “sincere and tireless efforts positioned Pakistan as a trusted neutral mediator on the global stage.” It also congratulated the leaders of Iran and the United States on the successful conclusion of the historic agreement.
