Pakistan set to cut fuel prices by up to PKR 35 per litre as global oil benchmarks tumble
Lower international petrol and diesel prices could provide inflation relief, with retail rates expected to be revised later this week
Haris Zamir
Business Editor
Experience of almost 33 years where started the journey of financial journalism from Business Recorder in 1992. From 2006 onwards attached with Television Media worked at Sun Tv, Dawn Tv, Geo Tv and Dunya Tv. During the period also worked as a stringer for Bloomberg for seven years and Dow Jones for five years. Also wrote articles for several highly acclaimed periodicals like the Newsline, Pakistan Gulf Economist and Money Matters (The News publications)
Pakistan set for fuel price cut as global oil eases
Pakistan’s government is expected to cut domestic fuel prices after global benchmarks for petrol and diesel fell sharply in mid-June, offering potential relief to consumers grappling with inflation.
According to pricing data reviewed on June 15, the derived ex-refinery cost of petrol (motor gasoline) fell to PKR 224.99 per litre in the fourth week of June, down from PKR 245.16 a week earlier.
High-speed diesel recorded an even steeper decline, dropping to PKR 268.96 per litre from PKR 304.11, a decrease of more than PKR 35 per litre.
The decline reflects a fall in international Free on Board (FOB) prices, with petrol dropping by nearly USD 10 per barrel and diesel by almost USD 18 per barrel compared with early June. Premiums on both products also eased, while the average rupee-dollar exchange rate remained stable at around PKR 278.5.
Global diesel prices fell to USD 138 per barrel from USD 156 per barrel, while petrol prices declined to USD 117 per barrel from USD 127 per barrel over the same period, according to estimates.
Officials say the government is weighing a price reduction to pass the benefit on to consumers.
“The decline in finished product costs has created fiscal space for adjustments,” a senior Energy Ministry official said on condition of anonymity, noting that incidentals and customs duties also declined in line with lower import values.
Fuel prices are politically sensitive in Pakistan, where transportation costs have a broad impact across the economy.
Petrol is widely used by private motorists, while diesel powers agriculture and freight transport. Analysts warn that while the latest decline could provide temporary relief, volatility in global oil markets and exchange-rate pressures may limit the government’s ability to sustain lower prices.
Pakistan State Oil (PSO), the country’s largest fuel supplier, has already adjusted its import premiums by removing earlier surcharges.
The government is expected to announce revised retail fuel prices later this week.
For households and businesses, the anticipated reduction could help ease inflationary pressures that have persisted since early 2026. However, economists caution that any relief may be short-lived if geopolitical tensions or supply disruptions push global oil prices higher again.
Comments
See what people are discussing