Finance Minister Ishaq Dar on Wednesday announced that the price of petrol was being cut by Rs8 and diesel by Rs5 per liter for the next fortnight.
The new prices of petrol and high-speed diesel are Rs262 and Rs253 per liter, respectively.
The prices will come into effect at 12am tonight and will remain unchanged for the next fortnight.
Dar said that cumulatively, the prices of petrol and diesel were reduced by Rs20 and Rs35 per litre, respectively, in May.
The move by the government comes as it is under greater pressure from rising petrol prices, which earlier this year had hit a record of Rs282 per litre, and inflation, which is currently the highest in the area.
Although the recent drop in oil prices has brought some respite, the government is still having trouble keeping costs down as the value of the rupee drops.
Oil marketing companies (OMCs) had estimated that the prices of diesel and petrol are likely to drop by Rs5 per litre. Separately, sources also said that the government might keep the prices of petroleum products unchanged due to the rupee’s depreciation.
