ISLAMABAD (April 11, 2026) — Prime Minister Shehbaz Sharif has announced a substantial reduction in petroleum prices, headlined by a historic Rs 135 per litre cut in high-speed diesel (HSD). The move, intended to pass the benefits of the Pakistan-brokered U.S.-Iran ceasefire directly to the public, comes just as formal peace negotiations are set to commence in the capital.
Reduction in petroleum products’ prices, effective 00.01 hours 11th April 2026, AlhamdoLilah👇 pic.twitter.com/ut20g2kJIW
— Ishaq Dar (@MIshaqDar50) April 10, 2026
At a Glance: New Fuel Prices (Effective April 11–17)
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High-Speed Diesel (HSD): Rs 385.54 (Down by Rs 135.00 or 26%)
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Petrol (Mogas): Rs 366.58 (Down by Rs 11.83)
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Kerosene Oil: Rs 450.15 (Down by Rs 17.33)
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Light Diesel Oil (LDO): Rs 369.72 (Down by Rs 25.31)
Strategic Pricing and Local Corrections
The dramatic drop in diesel prices is attributed to a critical correction in the pricing formula. While global rates have eased due to the two-week truce, sources reveal that the government also addressed a disparity that previously allowed local refineries—which produce over 70% of the country’s diesel—to reap undue benefits from war-inflated Middle Eastern price parities. By adjusting this “spread,” the government achieved a significantly deeper cut for diesel than for petrol.
Notably, tax rates remain unchanged. The government continues to collect Rs 107 per litre on petrol (including an Rs 81 petroleum levy) and approximately Rs 39 per litre on diesel through customs duties and the climate support levy.
The Prime Minister’s Mandate
In a televised address on the eve of the U.S.-Iran summit, Prime Minister Shehbaz Sharif disclosed that he had rejected formal advice to retain a portion of the price drop to recoup the Rs 129 billion spent on fuel subsidies over the past month.
“I rejected the proposal without wasting a moment,” the Prime Minister stated, citing a moral obligation to provide relief to a public that has endured skyrocketing costs since the conflict began on February 28. He emphasized that the diesel price cut is particularly vital for the farming community as the wheat harvest begins, helping to prevent a surge in food inflation.
Continuity of Targeted Relief
The Prime Minister reaffirmed that despite the broad price cuts, the government’s targeted subsidies for two-wheelers, public transport, and the agricultural sector will remain in effect. These measures, including the “People’s Motorcycle” app-based relief, are being funded exclusively by the federal government to shield the most vulnerable from the volatility of international energy markets.
As the capital prepares to host Vice President JD Vance and Foreign Minister Abbas Araghchi for the first round of formal talks today, this economic relief package serves as a domestic stabilizer during a period of high-stakes international diplomacy.
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