The federal government has announced a reduction in the price of diesel by Rs5 per litre, effective immediately, while maintaining the price of petrol for the next two weeks.

Finance Minister Ishaq Dar said that the prices are revised to provide “maximum relief” to the public, following the directives of Prime Minister Shehbaz Sharif. In addition to the decrease in diesel prices, there will be a reduction of Rs10 per litre in the prices of Kerosene oil and Light Diesel Oil (LDO).

The new prices have been set at Rs282 per litre for petrol, Rs288 per litre for high-speed diesel, Rs176.07 per litre for kerosene oil, and Rs164.68 per litre for light diesel oil. Diesel is widely used in the transport and agriculture sectors, so the price reduction could have a positive impact on inflation and provide some relief to farmers, particularly as the crop-harvesting season is underway.

However, consumers are already facing high prices, which are especially burdensome for the low-income group who use motorbikes and small cars.

In its previous fortnightly announcement, the federal government increased the price of petrol by Rs10 and the price of kerosene oil by Rs5.78, citing the increase in petroleum prices in the international market and exchange rate variations as the reason for the increase.