Speculation is growing that Pakistan may announce another reduction in fuel prices during its next fortnightly review as global oil markets retreat following the US-Iran ceasefire.
Government-aligned analysts and media commentators have suggested Islamabad could lower petroleum prices further by mid-April after diplomatic efforts helped secure a 14-day truce between Washington and Tehran, which took effect on Wednesday.
The ceasefire, announced by US President Donald Trump, included Iran’s temporary reopening of the Strait of Hormuz to oil tankers, easing immediate concerns over global supply disruptions.
That development triggered a sharp drop in international oil prices. West Texas Intermediate crude fell between 14 and 16 percent to around $96-$97 per barrel, while Brent crude dropped 13 to 14 percent to roughly $93-$95.
Previous Cut Already Announced
Earlier this month, Prime Minister Shehbaz Sharif announced a major reduction of Rs80 per litre in petrol prices, lowering the rate from Rs458 to Rs378 effective April 4.
The government said the reduction would remain in place for at least one month and would be financed through adjustments in petroleum levies and broader austerity measures.
Officials also indicated that spending cuts, including reported salary reductions for ministers, would help offset the fiscal cost of the relief package.
No Official Confirmation Yet
Despite market optimism, the government has not formally indicated that another reduction is imminent.
Industry groups, including the Pakistan Industrial and Traders Associations Front, have urged authorities to eliminate petroleum levies entirely, arguing that such a move could theoretically reduce petrol prices to nearly Rs215 per litre.
However, officials have so far stopped short of endorsing that proposal.
For now, expectations of another cut remain speculative, though continued weakness in oil prices and improving geopolitical conditions may increase pressure on policymakers ahead of the next review.
