The government has reduced the petrol and diesel prices by Rs8.47/litre and Rs6.7/litre, respectively, on the eve of Independence Day.

The new rates for petrol and diesel are Rs260.69/ltr and Rs266.07/ltr, according to the government’s statement.

The prices of petrol and diesel are expected to decrease by Rs11 and Rs7 per litre respectively, they said and added the Ministry of Finance would make the final decision on the price adjustment after consultation with the Prime Minister’s Office.

It merits here to mention that the petroleum products prices in Pakistan are revised on the 1 and 16 of every month, with either an increase or decrease announced for the next 15 days.

This price cut comes as a relief for the public, who have been grappling with the high cost of fuel in the country. The government’s decision to reduce the prices is likely a response to the fluctuations in the global oil market and the economic challenges faced by the country.

Oil falls more than $1 as attack fears fade

Brent and US crude oil futures fell more than $1 a barrel on Tuesday as markets saw reduced risk of a wider war in the Middle East, Reuters reported.

Benchmark Brent crude futures were down $1.16, or 1.4% at $81.16 a barrel as of 9:13am Central time (1413 GMT) while US West Texas Intermediate crude was down $1.11, or 1.4%, at $78.95 a barrel.

“The markets had priced in an imminent attack by Iran against Israel within 24 to 48 hours,” said Phil Flynn, senior analyst at Price Futures Group. “That hasn’t happened. The market is taking that risk premium out of the price for crude.”

Brent on Monday gained more than 3%, closing at $82.30 a barrel after hitting the lowest closing price in seven months, $76.30, a week earlier.

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The International Energy Agency kept its 2024 global oil demand growth forecast unchanged on Tuesday but trimmed its 2025 estimate, citing the impact of lacklustre Chinese consumption on economic growth.