Islamabad : The prime minister office (PMO) Friday said the government has reduced the prices of petrol and high speed diesel (HSD) each by Rs 22 per litre to pass on the relief of reduction in the brent prices in the global market.
It added the sizeable reduction in the prices of petrol and HSD is a gift for the people of Pakistan on the Eidul Azha.
The PMO further added the reduction in the rates of petroleum products is in line with the commitment of prime minister , Shahbaz Sharif, to pass on the benefit of downward revision in the oil prices in the global market. The PMO also noted the government ensured smooth supply of the petroleum products during the blockade of the Strait of Hormus.
It claimed the Shahbaz government gave Rs 130 per litre subsidy on the petrol and HSD to offset the effect of the rising prices during the war in the Middle East (ME).
NEWSMAN calculations suggest that the relief given in the oil prices to the commuters on Friday is much less than the reduction in the Brent rates in the global market. As per available statistics, the Brent prices dipped from $ 104 a barrel to $ below $ 90 on the media reports claiming an initial understanding between Iran and the US to extend the ceasefire in the ME for 60 days.
As per these calculations, the government should have cut the oil prices by 15% i e Rs 50 to Rs 60 per litre. The oil prices were around Rs 252 per litre in February 2025 when Israel and the US unleashed war on Iran. The government took the war as an opportunity and increased the prices of the oil by Rs 135 a litre within 48 hours of the beginning of the war in the ME. It had horrifying impact on the people who were already reeling under unbearable inflation. The government did not stop there it kept on revising the oil prices upward to generate addition taxes under Petroleum Levy . At one stage , the prices of petrol and HSD in Pakistan topped the entire region. It made everything out of reach of the low income and middle class in the country. The people had lost the buying power and they made repeated calls to the government to review its policy of generating Petroleum Levy to make up shortfall in revenue collection. Even after current reduction of Rs 22 a litre , the oil prices in Pakistan are still the highest in the entire South Asia region.