Prime Minister Shehbaz Sharif has approved a major reduction in diesel prices to provide immediate financial relief to citizens, according to an official statement released on Friday.
Under the revised rates, diesel will become cheaper by Rs32.12 per litre, bringing the price down from Rs385.54 to Rs353.43. The prime minister instructed authorities to ensure that the benefit of this reduction reaches the public without delay. The new price will take effect from midnight.
The decision comes amid sharp fluctuations in international oil markets, largely influenced by recent developments in the Middle East. Global crude prices dropped significantly after Iran announced that the Strait of Hormuz had been reopened for commercial shipping during a ceasefire period, easing concerns about supply disruptions.
Following the announcement, Brent crude and U.S. West Texas Intermediate prices saw steep declines, recording their biggest single-day losses in over a month.
Market analysts say reduced geopolitical tensions and the possibility of progress in talks between United States and Iran have improved expectations around global energy supply.
The Strait of Hormuz, a critical route for transporting oil and liquefied natural gas, had remained largely inaccessible due to months of regional tensions. Its reopening has triggered a rapid response in global energy markets, though uncertainty persists regarding the sustainability of the ceasefire and full recovery of supply flows.
