Pakistan reduces fuel rates as global oil prices fall amid US-Iran peace hopes

ISLAMABAD: Pakistan’s Oil and Gas Regulatory Commission (OGRA) announced on Monday that it has reduced petrol and diesel prices as global oil prices fell by three percent. The cuts come as hopes grow for a peace agreement between the United States and Iran following recent meetings between Iranian and Qatari officials.

OGRA issued a notification confirming that the government has lowered the price of petrol by Rs3.40 per liter (approximately $0.012) and diesel by Rs7.76 per liter (about $0.028), according to the state-run Associated Press of Pakistan.

The revised petrol price is Rs374.51 ($1.353) per liter, down from Rs377.91 ($1.366) per liter. High-speed diesel has also been reduced from Rs402.96 ($1.456) to Rs395.20 ($1.428) per liter, as reported by state media.

“The revised prices will take effect from November 3, 2026,” said APP.

“The new prices have been determined in accordance with the petroleum products pricing mechanism issued by the federal government,” the notification further stated.

Petrol is widely used in motorcycles and private vehicles across Pakistan, while high-speed diesel powers trucks, buses, and agricultural machinery. The change affects transportation costs and contributes to food inflation.

Pakistan has also introduced targeted fuel subsidies for motorcycle riders, rickshaw drivers, and small car owners to protect lower-income households from the impact of rising fuel costs.

Iranian negotiators were in Doha on Sunday for a third consecutive day of talks with Qatari mediators, aiming to push for a deal to end the US-Israel war on Iran.

“Iran’s Foreign Minister Abbas Araqchi stated on Sunday that the purpose of the ongoing and progressing talks is to continue consultations with Qatari mediators, adding that Tehran is prepared for both defense and diplomacy,” he said.

Brent crude futures fell $3.68 (3.2 percent) to $109.75 per barrel by 07:07 a.m. Saudi time on Monday, while US West Texas Intermediate crude was $100.69 per barrel, down $3.43 (3.3 percent). Brent ended October at its highest level in six months amid concerns that US-Iran tensions could flare again after Tuesday’s US midterm elections.

“Oil is seeing a technical pullback this morning after last week’s strong gains,” said Tim Waterer, chief market analyst at KCM Trade.

“Lingering hopes of diplomatic progress, combined with the absence of any meaningful military escalation over the weekend, have taken some of the immediate heat out of prices for now,” he added.

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