Consumers across Pakistan are expected to receive significant relief in the upcoming fortnightly fuel price review, with petrol and high-speed diesel (HSD) prices likely to witness substantial reductions amid a sharp decline in global oil prices.
According to estimates, petrol prices may be reduced by around Rs22 per litre, bringing the rate down from Rs373.78 to approximately Rs351 per litre. Meanwhile, high-speed diesel is expected to record an even larger decrease of nearly Rs39 per litre, lowering its price to around Rs339 per litre.
The anticipated reduction follows a major drop in international oil benchmarks. Federal Minister for Energy (Petroleum Division) Ali Pervaiz Malik said that global oil prices have been declining as Iran and the United States move closer to a ceasefire agreement. He added that Prime Minister Shehbaz Sharif has directed authorities to ensure that the full benefit of lower international oil prices is passed on to consumers.
For petrol, the international Free on Board (FOB) price dropped by $10.92 per barrel, falling from $126.22 to $115.30. This decline led to a reduction of Rs19.20 per litre in local refinery costs, while customs duties are also expected to decrease by Rs2.73 per litre. As a result, the projected ex-refinery price indicates a reduction of Rs22.47 per litre.
Diesel prices are expected to see even greater relief. The international FOB price for high-speed diesel declined by $20.49 per barrel, from $155.96 to $135.47. This translates into a reduction of Rs35.97 per litre in the local product cost, along with an additional Rs4.09 per litre decrease in customs duties. Overall, the projected ex-refinery price for diesel shows a decline of Rs39.58 per litre.
The Pakistani rupee remained largely stable during the review period, with the average exchange rate improving slightly from Rs278.54 to Rs278.46 against the US dollar.
In addition to the expected fuel price reductions, the government is also considering broader reforms in the petroleum pricing mechanism. Ali Pervaiz Malik revealed that a high-level committee has been formed to develop a transparent weekly fuel pricing formula in consultation with relevant stakeholders.
The minister further stated that the government is reviewing Pakistan’s energy security framework and plans to introduce several strategic initiatives in the coming months to strengthen the country’s long-term energy resilience.
