The federal government is likely to drop fuel prices on Friday, with estimates suggesting a cut of up to Rs. 20 per litre on petrol and as much as Rs. 35 per litre on high-speed diesel.
The ex-refinery price of petrol has fallen to Rs. 225 per litre, down from Rs. 245 last week.
Similarly, diesel’s ex-refinery price has dropped to Rs. 269 per litre from Rs. 304 during the same period.
On the global market, petrol prices have decreased by around $10 per barrel to $117, while diesel prices have fallen by about $18 per barrel to $138.
Even after these declines, fuel prices are still higher than before the Gulf War. Petrol remains about 27% above the pre-war level of $91 per barrel, and diesel is nearly 49% higher than the $92 level recorded in February 2026.
The final price relief for consumers will depend on government decisions, as a petroleum levy of Rs. 106 per litre on petrol and Rs. 53 per litre on diesel is still being charged.
A reduction in fuel prices could lower transport and farming costs. However, ongoing geopolitical tensions, including reports of Israel violating the US-Iran ceasefire by carrying out strikes in Lebanon, could affect and potentially reverse the current downward trend in prices.
