Pakistan Cuts Fuel Prices by Just Rs2 — Yet Still Struggles with Economic Crisis
Islamabad/New Delhi:
In a recent move, the Pakistani government has reduced petrol and high-speed diesel (HSD) prices by Rs2 per litre. The new prices stand at Rs252.63 for petrol and Rs256.64 for HSD, according to a press release issued by Pakistan’s Finance Division. These rates will be effective for the next two weeks.
Surprisingly, there was no change announced in the prices of kerosene oil and light diesel oil.
Why Only Rs2 Cut?
Just a few weeks ago, there was room for a much bigger price drop — around Rs10 per litre — due to falling international oil prices. But the Pakistani government chose a different path. Officials revealed they were already charging the maximum petroleum levy of Rs70 per litre on petrol and diesel. To keep prices high, the government passed an amendment to the law, allowing the levy to increase to Rs80 per litre.
This was done intentionally to avoid a bigger price drop, as cheaper fuel could increase consumption, raise pollution levels, and put pressure on foreign currency reserves. Pakistan heavily depends on imported oil, and managing the outflow of dollars is crucial for its weak economy.
Interestingly, global oil prices have dropped recently — about $6 per barrel for petrol and $5 for diesel — yet the benefit hasn’t been passed on fully to the public.
Where Will the Money Go?
Pakistan’s Prime Minister announced that the extra money collected through this increased levy will be used to build roads in Sindh and Balochistan, regions important for maintaining political alliances with coalition partners.
How Does This Compare to India?
Let’s look at how Pakistan’s fuel prices stack up against India’s:
| Country | Petrol Price (per litre) | Diesel Price (per litre) |
|---|---|---|
| Pakistan | Rs252.63 (PKR) | Rs256.64 (PKR) |
| India | ₹96.72 – ₹104.01 (varies by city) | ₹89.62 – ₹92.76 |
(Note: 1 Indian Rupee ≈ 3.34 Pakistani Rupees as of April 2025)
So in Indian terms, Pakistanis are paying ₹75–₹77 per litre for petrol, which is still cheaper than in most Indian cities after conversion. However, it’s important to remember that average incomes in Pakistan are lower, so the fuel cost still feels heavier for many households there.
Final Thoughts
While Pakistan’s small price cut may seem like a relief, the bigger picture shows a government trying to balance economics, politics, and environmental impact. Compared to India, Pakistan’s fuel rates (when converted) are lower — but the financial strain on its people is often higher due to economic instability.
As global oil prices continue to shift, both countries will be watching closely — and so will the people at the petrol pump.