ISLAMABAD: The government on Friday announced a significant reduction in petroleum prices, cutting petrol by Rs74 per litre and diesel by Rs67 per litre with immediate effect from midnight.

After the revision, the price of petrol has been reduced from Rs373 to Rs299 per litre, while diesel now stands at Rs311 per litre, down from Rs378.

Shehbaz Sharif said the relief was being passed on to the public in line with falling global oil prices and what he described as improved regional economic conditions following diplomatic efforts for peace.

He said the reduction reflects a commitment made to citizens and acknowledged the financial pressure faced by households during recent inflationary periods.

According to the prime minister, the government used around Rs129 billion through budget adjustments and austerity measures to stabilise fuel costs and provide relief to consumers.

He added that Pakistan avoided fuel shortages and rationing seen in other countries, crediting coordination between federal and provincial administrations for maintaining energy supply stability.

The government said savings from austerity measures were also directed towards subsidies for vulnerable groups during the crisis period, while efforts would continue to maintain macroeconomic stability and further reduce inflation.

Referring to regional developments, Shehbaz Sharif said Pakistan’s diplomatic engagement had contributed to peace initiatives in the Middle East and mentioned a recently signed agreement in Islamabad linked to broader regional stability efforts.

He also thanked members of the economic team and senior officials, including Ishaq Dar and Mohsin Naqvi, for their role in supporting policy coordination during the period.