Shehbaz Sharif Cuts Petrol Prices by Rs 74 Per Litre

Prime Minister Shehbaz Sharif announced a significant reduction in petroleum prices effective June 20, 2026, to ease inflationary pressure on households and businesses. Petrol prices will decrease by Rs 74 per litre, falling from Rs 373 to Rs 299, while high-speed diesel will drop by Rs 67 per litre, moving from Rs 378 to Rs 311. To fund these subsidies, the federal government utilized Rs 129 billion saved through austerity measures and development budget adjustments.

The decision followed a decline in international crude prices, specifically Arab Light crude falling to approximately $80 per barrel, which Sharif attributed to regional peace following Pakistani mediation in the Middle East. Prior to the announcement, the Petroleum Division and the Oil and Gas Regulatory Authority drafted plans for a cut exceeding Rs 55 per litre. While oil marketing companies lobbied for a phased decrease, political figures from Pakistan Tehreek-e-Insaf and Jamaat-e-Islami demanded steeper reductions, with some calling for prices to return to 2022 levels.

Addressing the National Assembly in Islamabad, Sharif also detailed diplomatic developments with Iran. He confirmed a Pakistani delegation will visit Iran on July 3 and 4 for the funeral of Supreme Leader Ayatollah Sayyed Ali Khamenei. He further reported a telephone conversation with Iranian President Masoud Pezeshkian, who expressed gratitude for Pakistan's support and pledged to visit the country soon.