Pakistan set for fourth straight fuel price cut as global oil eases

Pakistan’s government is expected to cut petroleum product prices for a fourth consecutive fortnight, a move aimed at easing pressure on households and helping cool domestic food inflation, officials and analysts said.

The government is likely to reduce petrol prices by about PKR 6 per liter and diesel by PKR 5 per liter for the fortnight beginning Jan. 16, according to industry estimates.

A final decision is expected after approval from Ministry of Finance.

If approved, the cumulative reduction since mid-November would bring petrol prices down by around PKR 23 per liter and diesel by about PKR 17 per liter.

Lower fuel prices are expected to provide some relief to consumers and help reduce transportation costs, a key driver of food inflation in the country.

“Any sustained decline in fuel prices directly feeds into lower freight costs, which can gradually ease pressure on essential food items,” said an energy analyst.

“While the cuts may seem modest, the cumulative impact over several fortnights can significantly improve consumer sentiment.”

Global oil prices have weakened in recent weeks, supporting the expected reduction. International petrol prices fell by $3 to $71.56 per barrel, while diesel declined by $2 to about $77 per barrel.

Pakistan frequently reviews fuel prices on a fortnightly basis, adjusting them in line with global market movements and exchange rate fluctuations. Fuel costs remain a politically sensitive issue in the country, where inflation has strained household budgets despite recent signs of economic stabilization.

Oil prices fell more than 1% after President Donald Trump signaled he might not attack Iran.

U.S. crude oil fell 95 cents, or 1.55%, to $60.20 per barrel. Global benchmark Brent was down 93 cents, or 1.42%, to $64.54.