The federal government on Friday reduced the prices of petrol and high-speed diesel by Rs5 per litre each for the next week, according to a notification issued by the Petroleum Division.

Under the revised prices, high-speed diesel will cost Rs409.58 per litre, while petrol will be available at Rs409.78 per litre.

The Petroleum Division said the revised prices would take effect from midnight and remain applicable for the next week.

This marks the first reduction in fuel prices in recent weeks after successive hikes linked to the fuel crisis triggered by the blockade of the Strait of Hormuz amid the conflict between the United States and Iran.

Last week, the federal government increased the price of petrol by Rs14.92 per litre and high-speed diesel (HSD) by Rs15 per litre, taking the prices to Rs414.78 and Rs414.58 per litre, respectively.

The US and Israel launched an attack on Iran in February, after which Tehran retaliated with strikes and closed the Strait of Hormuz, disrupting global oil supplies and triggering a sharp rise in international oil prices.

As petroleum prices surged, prompting the government to raise fuel prices by more than 50%.

Amid rising prices, the government increased petroleum product rates twice during the first week of March, noting that the hikes exceeded the increase in international market prices. However, the sharpest increase was witnessed in April this year.

Last month, the government raised the petrol price by Rs137 per litre, taking it to a record Rs458.4 per litre. A few days later, however, the prime minister, in a televised address, announced an Rs80 per litre reduction in the petroleum levy on petrol, bringing its price down to Rs378 per litre.

Earlier this month, the government again increased the prices of both petrol and high-speed diesel by Rs26.77 per litre despite no corresponding increase in international rates, after imposing an additional levy of nearly Rs27 per litre on fuel.

A week later, petroleum product prices were increased once again, pushing rates close to Rs400 per litre. Subsequently, the Petroleum Division issued another notification last week, raising prices by nearly Rs15 per litre.