ISLAMABAD: Consumers across Pakistan may receive unprecedented relief at the fuel pump from June 20, as the federal government is considering a reduction of more than Rs55 per litre in petroleum product prices, following a sharp decline in international crude oil prices and easing geopolitical tensions in the Middle East.
The anticipated relief comes in the wake of the US-Iran peace agreement, brokered and mediated with Pakistan’s diplomatic facilitation, and the subsequent reopening of the Strait of Hormuz, a critical global oil shipping route. The development has significantly calmed energy markets, resulting in a steep fall in international crude oil prices.
The expected reduction is likely to provide much-needed respite to consumers who have been struggling with rising living costs. Pakistan’s inflation rate accelerated to 11.7 per cent in May 2026, compared to 10.9 per cent in April, with higher fuel and transport costs contributing significantly to the increase.
According to informed sources, Prime Minister Shehbaz Sharif has directed the Petroleum Division, Pakistan State Oil (PSO), and the Oil and Gas Regulatory Authority (OGRA) to prepare detailed working papers examining the possibility of reversing the substantial fuel price increase announced on March 7, 2026.
