Pakistan set to cut fuel prices as global oil prices fall

ISLAMABAD: Pakistan is expected to sharply cut domestic fuel prices in the coming days as global oil prices tumble following a ceasefire in the Middle East, officials sources said on Wednesday.

They said that petrol prices could fall by as much as Rs55 per litre, while diesel prices may be reduced by up to Rs100 per litre, according to sources.

Prime Minister Shehbaz Sharif is expected to announce the new prices soon, marking a potential relief for consumers after weeks of volatility in global energy markets.

The anticipated cuts come as international oil prices slid sharply on Wednesday after a two-week ceasefire between the United States and Iran eased fears of disruption to supply routes through the Strait of Hormuz — one of the world’s most critical energy chokepoints.

Brent crude fell below $100 per barrel, hitting its lowest level in nearly a month at around $91.70, after a period of sharp gains driven by the Middle East conflict.

Energy markets had surged during the six-week conflict, forcing governments and companies worldwide to brace for supply shocks and higher costs.

The easing of tensions has also weighed on energy stocks, with shares of major US oil firms such as Exxon Mobil and Chevron declining as investors reacted to falling crude prices.

In Pakistan, officials said the government had previously increased fuel prices in line with rising global oil rates amid the conflict, reflecting the pass-through effect of international markets on domestic pricing.

However, with the situation now stabilising, the government is preparing to pass on the benefits of lower global prices to consumers.

In an earlier move, authorities had reduced fuel prices by cutting petroleum levies to provide relief, even as they sought to balance fiscal pressures and stabilise the economy.

Government officials have also assured coalition partners that further reductions will be made as global oil markets normalise following the de-escalation in the region.

A key meeting of allied parties was held at Parliament House, where ministers briefed political leaders on the energy situation, global oil trends and steps taken to stabilise the economy.

Officials highlighted that domestic fuel pricing remains closely tied to international crude prices, meaning fluctuations in global markets directly impact consumer costs in Pakistan.