The cut brings petrol to Rs403.78 per litre and HSD to Rs402.78 per litre, effective from midnight Friday.

The new prices will remain in effect for the next seven days, in line with the current weekly review cycle.

Government sources said the reduction was proposed after taking into account fluctuations in global crude oil prices and the prevailing domestic economic situation.

The decision follows last week’s Rs5 per litre reduction, which brought petrol to Rs409.78 per litre and HSD to Rs409.58 per litre.

The government has been reviewing petroleum prices every week since the US-Israeli strikes on Iran on February 28 triggered a global fuel crunch.

The conflict prompted Iran to effectively close the Strait of Hormuz, the critical waterway through which roughly one-fifth of the world’s oil and gas supplies transited during peacetime, sending fuel prices sharply higher in the weeks that followed.

While consecutive reductions are expected to ease some pressure on transportation and commodity costs, fuel prices remain significantly higher than pre-conflict levels, and the broader inflationary impact of preceding hikes continues to weigh on consumers across the country.