PM Shehbaz announces reducing petrol prices ‘significantly' after oil prices retreat
“We had promised that we would bring the price of petroleum products down," says PM Shehbaz Sharif
Published June 19, 2026
- PM Shehbaz says fulfilling promise made to lower fuel rates.
- Praises his team for managing oil crisis, ensuring "public relief".
- Price cut to be announced after weekly review tonight.
Prime Minister Shehbaz Sharif has announced that the government intends to reduce petrol prices substantially after oil prices retreated following a US-Iran peace deal.
“We had promised that we would bring the price of petroleum products down and repay each penny to the people,” he said during his address to the National Assembly in Islamabad on Friday.
“So today, after our weekly review, we will announce a significant reduction [in the price of petroleum products],” the prime minister said, praising his ministers for managing the oil crisis.
In the previous weekly review, the federal government slashed the prices of petrol and diesel by Rs4 and Rs2 per litre, respectively, for the week ending June 19.
The prime minister praised the chief ministers for backing the federal government in providing relief to the people through targeted subsidies.
He reminded the House that when the oil prices skyrocketed, the Centre had utilised around Rs128 billion to provide relief to the public.
Oil prices fell further on Friday as prospects for more supply brightened after oil tankers began moving through the reopened Strait of Hormuz following the peace deal, for which Pakistan was the main mediator.
The government, which would review the price of petroleum products on a fortnightly basis, has been reviewing petroleum prices on a weekly basis since the US-Israeli conflict with Iran on February 28.
The price of petrol was Rs258.17 per litre when the war began and jumped to as high as Rs458.41 per litre, before coming a little above Rs370 per litre, just a few days back. Meanwhile, diesel was at Rs275.7 per litre and jumped to as high as Rs520.35 per litre.
The conflict had triggered a global fuel crunch after the closure of the Strait of Hormuz, a key route through which around one-fifth of the world's oil and gas supplies pass during peacetime. It also led to a rise in inflation not only in Pakistan but across the globe.
Petrol is mainly used by commuters in small vehicles, rickshaws and two-wheelers. Higher fuel prices significantly impact the budgets of middle and lower-middle-class households, who rely on petrol for daily travel.
On the other hand, a significant portion of the transport sector relies on high-speed diesel. Its price is considered inflationary since it is predominantly used in heavy goods transport vehicles, trucks, buses, trains, and agricultural machinery such as tractors, tube wells, and threshers.
