The federal government is expected to announce a significant reduction in fuel prices on Friday, with estimates indicating a cut of up to Rs. 20 per litre for petrol and around Rs. 35 per litre for high-speed diesel.

The ex-refinery price of petrol has dropped to Rs. 225 per litre from Rs. 245 in the previous week, while diesel has fallen to Rs. 269 per litre from Rs. 304. The decline follows a sharp downturn in global oil markets, where petrol prices have eased by nearly $10 per barrel to $117 and diesel by about $18 to $138.

Despite the recent decline, fuel rates remain well above pre-crisis levels. However, final consumer relief will depend on government taxation, including a petroleum levy of Rs. 106 per litre on petrol and Rs. 53 on diesel.

Any price cut could ease transport and agriculture costs, though global geopolitical tensions continue to pose risks to oil market stability.