Pakistan has decided to cut a 9.9 percent fuel price hike by half after political pressure from a key party in the ruling coalition.
Finance Minister Abdul Hafeez Sheikh announced the decision early on Friday.
The decision shows the weakness of the ruling Pakistan People's Party, which is struggling to maintain its governing coalition. It is also under pressure from international lenders to implement unpopular economic reforms.
Analysts say the government must raise fuel prices because it is short of money and because unrest in the Arab world is shaking international oil markets.
The Muttahida Qaumi Movement, a ruling coalition member, disagrees with the People's Party on the subject. It says Pakistani citizens cannot bear steep increases.