KARACHI: Fuel prices in Pakistan could be further reduced after a fortnightly review, perhaps by mid-April, with optimism prevailing among analysts and market observers. The new expectations arise following the remarkable success of Pakistan’s diplomacy, which managed to arrange a 14-day ceasefire agreement between the US and Iran, effective since Wednesday, April 8, 2026.
Under the terms of the ceasefire, Iran agreed to re-open the Strait of Hormuz for oil shipments. The move instantly dispelled any fears regarding the security of the oil supply chain and caused international oil prices to drop dramatically. West Texas Intermediate (WTI) crude fell 14% to 16%, to $96-$97 per barrel, whereas Brent crude saw a decline of 13% to 14%, to $93-$95 per barrel.
Government Builds on Recent Relief
Additionally, the good news had come from Prime Minister Shehbaz Sharif in his televised speech to the consumers. He further stated that the government will bear the cost by making changes in levies and taking stringent measures.
In the meantime, industry associations like the Pakistan Industrialists Association of Faisalabad are now urging even more bold steps. They are advocating for the abolition of the levies altogether, and hence the price of petrol can reduce up to Rs 215 per liter.
Market Sentiment Fuels Fresh Hopes
Moreover, the positive diplomatic atmosphere that has emerged out of the successful mediating role of Pakistan seems to bolster the rationale for additional support. The decline in international prices of oil enables the government to benefit its citizens by transferring savings into their accounts without placing undue burden on the national treasury. Although it is only speculation at present, but many experts are confident that the two factors can lead the authorities to take further action very soon.
Both individuals and corporations await with keen interest the forthcoming price review.
