Government cuts diesel price by Rs32.12 after global oil prices tumble

The government on Friday announced a significant reduction in high-speed diesel prices, lowering the rate by Rs32.12 per litre to Rs353.43, down from Rs385.54, with the revised price set to take effect from midnight.

Prime Minister Shehbaz Sharif approved the reduction and directed authorities to ensure that the benefit is transferred to consumers at the earliest.

The price cut follows a steep decline in international oil markets, where crude benchmarks recorded their sharpest single-day losses in over a month amid improving supply outlooks.

Brent crude prices fell by nearly 13 percent, while U.S. West Texas Intermediate crude also posted significant losses after Iran announced that the Strait of Hormuz would remain open for commercial shipping during the duration of a ceasefire.

The development eased concerns about potential disruptions to global energy supplies through the strategic waterway, which handles a substantial share of the world’s oil and liquefied natural gas shipments.

Analysts said the reopening of the Strait, coupled with expectations of possible progress in negotiations between the United States and Iran, prompted a swift repricing in energy markets.

However, market participants cautioned that uncertainty persists regarding how quickly shipping volumes will normalize and whether the ceasefire will hold over the longer term.