ISLAMABAD: Pakistan’s government lowered petrol prices by Rs3.19 ($0.01) per liter this week as global crude prices declined approximately 1 percent. Renewed diplomatic prospects for resolving the US-Israeli conflict involving Iran helped ease supply concerns, with regional powers—including Pakistan, Saudi Arabia, Türkiye, and Iran—holding talks in Tehran to reduce tensions.
Brent crude futures fell $1, or 0.86 percent, to $114.81 per barrel by 07:18 a.m. Saudi time on Tuesday, while U.S. West Texas Intermediate crude dropped 88 cents, or 0.86 percent, to $100.88. Both benchmarks slipped about 1 percent early in the session. The decline followed meetings in Tehran between officials from Pakistan, Türkiye, Iran, and Saudi Arabia. According to Iranian state media, the four parties agreed to continue discussions aimed at strengthening cooperation on peace and security.
In a Tuesday notification, Pakistan’s Petroleum Division announced that petrol will retail at Rs376.06 ($1.36) per liter, while high-speed diesel will cost Rs398.07 ($1.44) per liter. Although petrol was reduced by Rs3.19 per liter, diesel prices increased by Rs2.25 ($0.0081).
The notification stated, “Under the federal government’s petroleum pricing mechanism, the Oil and Gas Regulatory Authority (OGRA) has revised ex-depot prices for petroleum products effective October 28, 2026.”
Last week, Brent crude climbed above $117 per barrel, its highest level since April, following a series of Iranian attacks on tankers transiting the Strait of Hormuz. Brent prices also reached $117 on Monday.
Pakistan depends heavily on imported energy, leaving its economy exposed to rising international prices and potential shipping disruptions through the Strait of Hormuz. Diesel costs influence freight and agriculture, while petrol prices directly affect household transportation budgets.
In July, amid conflict-related volatility, the government transitioned to daily fuel-price reviews, calculated using a seven-day average of international rates.
Soaring fuel costs have sparked public frustration, with the right-wing Jamaat-e-Islami party announcing plans to launch a protest movement against taxes imposed on petroleum products.
Last September, the government approved a Rs75 billion ($271 million) fuel subsidy program to protect lower-income motorists from price increases. Officials reported earlier this month that over nine million people are benefiting from the initiative.
