The federal government announced on Friday a reduction in petroleum product prices for the upcoming week, lowering petrol by Rs4 per litre and high-speed diesel (HSD) by Rs2 per litre. This move follows a decline in global oil prices, marking the fifth consecutive decrease in domestic fuel rates in recent weeks.
The Ministry of Energy’s Petroleum Division issued a notification confirming that the revised prices will be effective from June 13, 2026. Petrol’s ex-depot price has dropped to Rs373.78 per litre from Rs377.78, while HSD has been reduced to Rs378.78 per litre from Rs380.78.
Notably, this decision comes exactly one week after a previous petrol price cut of Rs4 per litre, although diesel prices remained unchanged at that time.
The price relief is largely attributed to a significant fall in international oil benchmarks. Brent crude futures fell to $87.33 per barrel on Thursday, the lowest since early March, down by $3.05 or 3.37 percent. Market optimism about a potential diplomatic breakthrough between the United States and Iran has eased concerns over supply disruptions.
Speculation of a deal has reduced fears of interruptions in the Strait of Hormuz, a vital maritime route responsible for nearly 20 percent of global petroleum transit. Earlier price hikes in Pakistan were closely linked to these geopolitical risks, as rising maritime tensions threatened shipping lanes and increased insurance costs for crude oil shipments.
As an economy heavily dependent on imports, Pakistan remains sensitive to international energy fluctuations and maritime supply challenges. While fuel prices are usually adjusted biweekly, the Ministry of Energy has increasingly implemented weekly changes to mitigate extreme volatility in global markets.
Fuel price adjustments have broad economic implications in Pakistan, impacting public transportation fares, freight costs, thermal power generation, and agricultural expenses. The recent consecutive reductions are expected to slightly ease inflationary pressures, providing relief to both consumers and businesses, as fuel prices continue to be a key factor influencing the overall consumer price index (CPI).
