The federal government has decided to keep petroleum prices unchanged for the next fortnight, despite a significant drop in international oil prices. According to the announcement, petrol will continue to sell at Rs. 254.63 per liter while high-speed diesel will remain at Rs. 258.64 per liter.

This decision comes at a time when global oil prices have plummeted by approximately 14 percent so far this month, driven by concerns over tariffs imposed by US President Donald Trump and increased supply from OPEC+ countries.

Prime Minister Shehbaz Sharif, while chairing the Federal Cabinet meeting earlier in the day, revealed that instead of passing on the reduction in international petroleum prices to consumers, the government will redirect the savings to critical infrastructure projects in Balochistan.

“The saved amount will be used for the dualization of the vital N-25 highway in Balochistan,” the Prime Minister announced. He added that the same funds would also support the completion of Phase 2 of the Kachhi Canal, a project expected to irrigate hundreds of acres of land in the province.

In a related development, the Federal Cabinet, acting on the recommendation of the Petroleum Division, approved an amendment to the Petroleum Products (Petroleum Levy) Ordinance 1961. The details of this amendment were not immediately specified.

The government’s decision to maintain current fuel prices while allocating potential savings to development projects represents a strategic shift in how windfall gains from international price fluctuations are utilized. This approach prioritizes infrastructure development in Balochistan, one of Pakistan’s least developed provinces, over immediate consumer relief through reduced fuel prices.