The federal government of Pakistan announced a reduction in petrol prices by Rs. 10.20 per liter. The revised prices, effective from June 15, 2024, will see petrol costing Rs. 258.16/liter, down from Rs. 268.36/liter previously. Diesel prices have also been adjusted to Rs. 267.89/liter, a decrease of Rs. 2.33/liter from its earlier rate of Rs. 270.22/liter.

This marks the fourth consecutive reduction in fuel prices in Pakistan, driven by recent declines in international market rates. The drop is attributed to a $2.7 and $3.75 per barrel decrease in HSD and petrol prices, respectively, over the past two weeks.

However, the government's recent fiscal budget for 2024-25 includes an increase in the petroleum levy from Rs. 60/liter to Rs. 80/liter on both petrol and diesel. This adjustment foreshadows potential future price hikes, albeit in phased increments, as acknowledged by the Prime Minister.

These measures are part of broader economic reforms recommended by the IMF, aimed at stabilizing the country's economy and securing an upcoming loan program with the International Monetary Fund. The adjustments in fuel prices reflect efforts to balance fiscal objectives amid ongoing economic challenges.