Pakistan cuts petrol price by Rs2.71/L while diesel price rises amid US‑Iran tensions

KARACHI: The Pakistani government cut the price of petrol by Rs2.71 per litre ($0.0098) on Wednesday, while increasing the price of high‑speed diesel by Rs0.31 ($0.00112) per litre, according to a notification from the Petroleum Division. The move comes as global oil markets remain volatile amid the continuing conflict between the United States and Iran.

Oil prices rose more than $1 on Wednesday as escalating Middle‑East tensions stoked concerns about supply disruptions. Brent crude futures climbed $1.61, or 1.5 %, to $110.40 a barrel by 09:30 a.m. Saudi time, and US West Texas Intermediate gained $1.45, or 1.5 %, to $99.27 a barrel. The gains followed a previous decline after Iran’s president spoke of mediation efforts during a meeting with Pakistan’s army chief in Tehran, though Brent earlier hit a five‑month high before easing.

The Petroleum Division announced that the new petrol price, effective until 22 October 2026, will be Rs379.31 ($1.37) per litre for petrol and Rs390.11 ($1.41) per litre for diesel. Taxes and duties remain at Rs114 per litre on petrol and Rs100 per litre on diesel.

The notification cited the federal government’s petroleum pricing mechanism and the Oil and Gas Regulatory Authority’s (OGRA) revision of ex‑depot prices for 22 October 2026.

Fuel prices have been elevated since February, when the US‑Iran war began after joint US‑Israeli airstrikes. Iran retaliated with attacks on US bases, civilian infrastructure and the closure of the Strait of Hormuz, a critical transit point for about 20 % of global oil and gas shipments. Pakistan, heavily dependent on Middle‑East oil supplies, has faced soaring costs, prompting rises in transport, food and living expenses and fuelling concerns about public unrest.

In response, Prime Minister Shehbaz Sharif launched a fuel‑subsidy scheme in September to alleviate the burden on citizens. The programme offers discounts to motorcyclists, rickshaw operators and owners of small cars.

Motorcycle and three‑wheeler riders can receive a weekly discount of 500 Rs ($1.79) up to four times a month, totalling 2,000 Rs ($7.14) per month. Owners of cars with engines up to 800 cc are eligible for a discount of 100 Rs (≈$0.36) per litre on up to 10 litres of petrol every ten days, allowing three tokens per month and a maximum monthly saving of 3,000 Rs ($10.71).

Pakistan has been actively mediating between Washington and Tehran, seeking a durable peace. On Tuesday, Army Chief Field Marshal Syed Asim Munir travelled to Tehran to meet Iranian civilian leaders and discuss regional developments. However, Iranian media reported that Tehran told Munir there would be no talks with the United States until its demands were met. US Vice President JD Vance recently stated that Iran must significantly curtail its uranium‑enrichment capacity to satisfy US requirements and end the eight‑month conflict.

Israel, the US and other Western nations continue to accuse Iran of pursuing nuclear weapons, pointing to enrichment levels of 60 %—far above civilian needs and close to weapon‑grade levels. Iran denies any intent to develop nuclear weapons.

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