Government keeps petrol and diesel prices unchanged despite continued decline in international oil markets
ISLAMABAD: The federal government has decided to keep petroleum prices unchanged for the week commencing June 27, 2026, despite a continued decline in international crude oil prices that had fuelled expectations of another round of relief for consumers.
According to a notification issued by the Petroleum Division on Friday, the ex-depot price of petrol will remain at Rs299.50 per litre, while high-speed diesel (HSD) will continue to be sold at Rs311.47 per litre.
The decision comes even as global oil prices have retreated sharply in recent days following easing geopolitical tensions in the Middle East. International crude markets weakened after the signing of the Islamabad Memorandum of Understanding (MoU) between the United States and Iran, a peace agreement facilitated by Pakistan, which contributed to the reopening of the Strait of Hormuz and eased concerns over global oil supplies.
With Brent crude falling below levels seen before the conflict, many consumers had anticipated another reduction in domestic fuel prices. However, the government opted to maintain existing rates in its latest weekly review.
The decision is likely to disappoint motorists and businesses, particularly after Prime Minister Shehbaz Sharif repeatedly stated that the government would pass on the full benefit of lower international oil prices to consumers without delay.
Although current petroleum prices remain unchanged, they are still significantly higher than those prevailing before the regional conflict. According to the government’s notification issued on February 15, 2026, the ex-depot price of petrol had been increased to Rs258.17 per litre from Rs253.17, while the price of high-speed diesel was raised to Rs275.70 per litre from Rs268.38 per litre.
The government had announced one of the largest reductions in petroleum prices in recent years during the previous weekly review, effective June 20, 2026. Under that revision, the price of petrol was slashed by Rs74 per litre, while high-speed diesel was reduced by Rs67 per litre, following a sharp fall in international oil prices.
Despite continued weakness in global crude markets, the latest review leaves domestic fuel prices unchanged, suggesting the government may be considering other fiscal factors, including petroleum levy collections, exchange rate movements and pricing adjustments, before passing on any further benefit to consumers.
Energy analysts note that while international oil prices remain favourable, domestic fuel pricing is influenced by several variables beyond crude prices, including taxes, import costs, freight margins and exchange rate fluctuations. They believe future price revisions will depend on the government’s broader fiscal strategy as well as developments in the international energy market.
