Pakistan Trims Fuel Prices Again, Yet Petrol Stays Nearly Half‑again Above Pre‑war Levels

KARACHI: Pakistan reduced petrol and diesel prices again on Wednesday, providing modest relief to motorists, though gasoline remains roughly 46 % higher than before the US‑Iran war disrupted Gulf energy supplies in February.

Petrol dropped by Rs1.49 (about $0.005) to Rs387.54 (roughly $1.40) per litre, and high‑speed diesel fell by Rs2.73 (approximately $0.01) to Rs402.24 (about $1.45), according to a Petroleum Division statement released on Tuesday.

Prior to the war’s start on 28 February, petrol was priced at Rs266.17 (around $0.96) per litre and diesel at Rs280.86 (about $1.01). The current levels are roughly 45.6 % higher for petrol and 43.2 % higher for diesel, imposing considerable extra costs on motorists and firms moving goods.

Pakistan relies heavily on imported oil and refined fuels, leaving it exposed to any interruption in Gulf supplies. The conflict, triggered by US and Israeli strikes on Iran, has curtailed traffic through the Strait of Hormuz—the narrow channel linking the Gulf to the open ocean that previously carried roughly one‑fifth of worldwide oil shipments.

“The price adjustment reflects global developments such as shifts in Platts rates, premiums and other incidentals,” the Petroleum Division noted, citing international fuel‑price benchmarks and added procurement expenses.

These cuts follow the reductions announced on Tuesday of Rs2.27 (about $0.008) per litre for petrol and Rs3.56 (approximately $0.013) for diesel.

Pakistan now evaluates fuel prices each day based on a seven‑day rolling average of international rates, enabling import‑cost fluctuations to be reflected more swiftly.

Even with the recent domestic cuts, global energy supplies stay strained. The International Energy Agency’s latest data indicate that oil flow through Hormuz averaged 7.6 million barrels per day in August, roughly 13.1 million barrels less than prewar levels.

Saudi Arabia and the United Arab Emirates have rerouted certain exports via pipelines and ports outside the strait, while other producers have raised output. Emergency stock releases and weaker demand have also mitigated some of the shortfall, although renewed attacks have limited alternative pathways, the agency added.

In parallel, the Pakistani government is providing targeted petrol subsidies for low‑income motorists. Eligible motorcycle and rickshaw riders can obtain Rs500 (about $1.80) in weekly relief, whereas car owners with engines up to 800 cc qualify for Rs1,000 (approximately $3.61) every ten days.

The programme operates through registration and digital tokens that can be redeemed at participating filling stations. These discounts lower the bills of qualifying customers but do not change the national fuel prices used to gauge the increases since the war started.

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