Pakistan Lowers Fuel Prices for Fifth Consecutive Week Amid Shifting US-Iran Dynamics

Islamabad this week announced further reductions in petroleum product prices, even as concerns persisted over renewed tensions between the United States and Iran, following Washington’s reported limited strikes on Iran early Saturday.

According to a notification from the Oil and Gas Regulatory Authority (OGRA), the government cut petrol prices by Rs6.59 [$0.024] per liter and high-speed diesel by Rs4.25 [$0.015] per liter, marking the fifth consecutive reduction in fuel prices in recent days.

Following the adjustments, petrol is now priced at Rs346 [$1.25] per liter and diesel at Rs378 [$1.37] per liter in Pakistan. The revised rates will remain in effect from November 7 to 10, according to state broadcaster Radio Pakistan.

“The government has revised petroleum product prices effective immediately for the next four days,” Radio Pakistan stated.

Pakistan has steadily increased domestic fuel prices since the outbreak of the US-Iran conflict in February, following joint airstrikes by Washington and Tel Aviv against Iran.

Nevertheless, Pakistan has reduced petroleum product prices five consecutive times in recent weeks, even as US-Iran engagement in indirect peace talks mediated by Qatar coincided with an electoral setback for former US President Donald Trump’s Republican party in the midterm elections.

In the days following the electoral setback, Trump has alternated between threatening to “destroy” Iran and suggesting that a resolution to the conflict may be imminent.

Late Friday, crude futures rose on renewed concerns over potential US strikes on Iran, following Trump’s statement that he would soon decide whether to pursue a peace agreement or escalate pressure on the country.

Brent crude futures for January settled at $98.32 per barrel, gaining 3 cents, or 0.03 percent. US West Texas Intermediate futures closed at $90.83 per barrel, up 31 cents, or 0.34 percent.

Tensions escalated after Iranian state media reported two explosions in the Suza area of Qeshm Island, within the strategic Strait of Hormuz, a key oil shipping corridor. Trump characterized the incident as “minor” in a reporter exchange.

“They knocked out a small anti-aircraft device, and we disabled it in about 15 minutes, maybe five,” Trump told reporters upon arriving in West Palm Beach, Florida, Friday evening.

The US military reported carrying out defensive strikes on Monday, with explosions heard on the islands of Qeshm and Hengam in the Strait of Hormuz, and in the nearby mainland area of Bandar Abbas.

Earlier Friday, Reuters cited two Middle East government officials stating that Iran was reviewing proposals from chief mediator Qatar aimed at addressing differences with the United States regarding Tehran’s nuclear program.

One official stressed that, at least for now, Iran remains unwilling to engage in negotiations with the Trump administration over its atomic activities unless the United States agrees to several core conditions that Iran has demanded as part of any ceasefire agreement.

Disagreement over Iran’s nuclear program remains the thorniest issue, one that Trump insists must be resolved as part of any deal aimed at ending the conflict, which has lasted over eight months.

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