Pakistan Cuts Fuel Prices but Costs Still Over 45% Above Pre‑War Levels

KARACHI – Pakistan reduced petrol and diesel prices starting Friday, though both fuels remain roughly 46% higher than they were before the US‑Iran war erupted in February, highlighting the ongoing financial strain on drivers.

According to a petroleum ministry notice, petrol dropped by Rs0.84 (≈$0.003) to Rs389.28 (≈$1.40) per litre, and diesel fell by Rs2.63 (≈$0.009) to Rs412.12 (≈$1.48) per litre. Compared with the rates in place just before the conflict, petrol is about 46% higher and diesel roughly 47% higher.

Pakistan, which imports the bulk of its fuel, has faced rising oil prices and shipping disruptions through the Strait of Hormuz since US and Israeli strikes on Iran started on 28 February. Prices spiked in March and April, softened as regional tensions eased in June, and then climbed again as the Gulf crisis intensified.

The ministry explained that “the price adjustment is driven by global developments, including changes in Platts rates, premiums, incidentals, etc.,” underscoring how international fuel benchmarks and ancillary costs influence Pakistan’s pricing formula.

Friday’s announcement made no link between the modest cuts and any specific military developments. The new rates replace Thursday’s figures of Rs390.12 (≈$1.40) for petrol and Rs414.75 (≈$1.49) for diesel.

Prior to the conflict, petrol was Rs266.17 (≈$0.96) per litre and diesel Rs280.86 (≈$1.01) per litre. Prices peaked in early April, prompting the government to reverse part of the surge; petrol later dipped to around Rs300 (≈$1.08) in June before rising again as the regional energy crisis deepened.

This month, the government launched a targeted fuel‑relief program that grants eligible motorcycle and rickshaw operators, as well as owners of cars with engines up to 800 cc, a Rs100 (≈$0.36) per litre discount on a capped amount of petrol. The subsidy lowers the effective price paid by registered beneficiaries.

The rates announced on Friday are the base prices before any relief discount is applied.

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