The federal government has reduced the price of kerosene by Rs 6.04 per litre, while keeping petrol and high-speed diesel prices unchanged despite expectations of a broader reduction in fuel prices.

Late on Friday night, the government initially announced that petrol and diesel prices would remain unchanged under the regular fortnightly fuel price review. The decision surprised consumers and market analysts, who had expected a reduction following the recent decline in international crude oil prices after tensions between Iran and the United States eased.

Instead of lowering the prices of the two major transport fuels, the government later announced a cut only in the price of kerosene oil.

Following the reduction, the new price of kerosene has been fixed at Rs 227.05 per litre, providing some relief to households and businesses that rely on the fuel, particularly in remote areas.

According to informed sources, the government faced strong pressure from petrol pump owners and fuel dealers while reviewing petroleum prices. The dealer lobby reportedly argued that repeated declines in international crude oil prices had already reduced their profit margins.

The dealers maintained that any further reduction in petrol and diesel prices would make it increasingly difficult for them to continue operating their businesses profitably.

The government's decision to keep petrol and diesel prices unchanged has disappointed many consumers, who had expected lower transport and fuel costs after the sharp fall in global oil prices.

The latest pricing decision highlights the balancing act between providing relief to consumers and addressing concerns raised by stakeholders in the country's petroleum supply chain. Observers will now closely watch the next fuel price review to see whether any delayed adjustment is made if international oil prices remain low.