The federal government has opted to maintain current fuel prices for the next two weeks, keeping petrol at Rs. 254.63 and high-speed diesel at Rs. 258.64, despite a sharp 14 percent decline in global oil prices. The decision follows market turbulence caused by US President Donald Trump’s new tariff policies and a surge in oil supply from OPEC+ nations.
During a Federal Cabinet meeting chaired by Prime Minister Shehbaz Sharif, the government announced that the funds saved from not passing on the international price drop to local consumers will be redirected to infrastructure development in Balochistan. A significant portion of the savings will fund the dualization of the N-25 highway, a critical transportation link in the region. Additionally, the government will utilize the remaining savings to complete Phase 2 of the Kachhi Canal, an irrigation project set to benefit hundreds of acres of agricultural land in Balochistan.
In line with these decisions, the Federal Cabinet also approved amendments to the Petroleum Products (Petroleum Levy) Ordinance 1961, based on recommendations from the Petroleum Division. This move underscores the government’s strategy to prioritize infrastructure and agricultural development over immediate consumer relief, aiming for long-term economic and regional growth.
