Early Saturday morning, the finance ministry announced a reduction in fuel prices, cutting petrol by Rs4.74 per litre and high-speed diesel (HSD) by Rs3.86 per litre. This announcement followed initial confusion over the extent of the cuts due to a premature report by state-run broadcaster PTV.
PTV initially reported that Prime Minister Shehbaz Sharif had directed a more substantial reduction of Rs15.4 per litre for petrol and Rs7.9 per litre for diesel for the next fortnight. However, this post on PTV’s official X account was quickly retracted. The PM House issued a clarification, stating that the figures reported were outdated and related to the previous month’s adjustments. Subsequently, the finance ministry released its fortnightly notification confirming the new, more modest reductions.
In the now-deleted post, the broadcaster claimed that the “people-friendly policies” of the government had brought economic stability and achieved a clear reduction in inflation. Despite the confusion, the final confirmed reductions still mark a relief for consumers.
Petrol and high-speed diesel prices were expected to decrease by approximately Rs6.5 to Rs7.5 per litre on May 31, owing to a bearish trend in the international market despite a slight exchange rate loss. Informed sources indicated that the prices of petrol and HSD had declined in the international market by about $3.25 and $2.1 per barrel, respectively, in the last fortnight. This reduction follows a previous drop of $8.7 and $4.3 per barrel in petrol and HSD rates, respectively, in the previous fortnight.
Additionally, the import premium on petrol has decreased by about seven per cent in the last fortnight to $9.7 from $10.3 per barrel. However, the rupee slightly depreciated by about 10 paise against the US dollar during the same period.
These adjustments are part of the government’s ongoing efforts to manage the cost of petroleum products amidst fluctuating global oil prices and provide economic relief to the public.