Falling global oil prices and easing Middle East tensions raise prospects of lower petrol and diesel rates
ISLAMABAD, June 18, 2026 — Pakistan is likely to slash petroleum prices in the upcoming review after Prime Minister Shehbaz Sharif directed authorities to pass on the benefits of declining international oil prices to consumers, raising expectations of significant relief at the fuel pumps.
The expected reduction in petroleum prices follows a decline in international crude oil markets after diplomatic progress between the United States and Iran eased concerns over disruptions to global energy supplies.
Federal Minister for Petroleum Ali Pervaiz Malik said the government had constituted a high-level committee to formulate a transparent weekly pricing mechanism for petroleum products, ensuring that changes in international markets are reflected more efficiently in domestic petroleum prices.
Government Orders Consumer Relief
In a statement posted on X, Malik said Pakistan’s diplomatic efforts had contributed to positive developments in the region, with the United States and Iran moving closer to a ceasefire arrangement.
He said improving geopolitical conditions had already begun to influence global energy markets, leading to lower crude oil prices and creating room for a reduction in petroleum prices in Pakistan.
The minister added that Prime Minister Shehbaz Sharif had directed relevant authorities to ensure consumers receive the full benefit of falling international oil prices through lower petroleum prices.
Global Oil Markets Remain Under Pressure
International crude prices continued to weaken as traders responded positively to reports of progress towards an agreement aimed at ending hostilities between the United States and Iran.
Brent crude was trading at around $77.95 per barrel, while US West Texas Intermediate (WTI) stood at approximately $74.70 per barrel during afternoon trading.
Market analysts said easing geopolitical tensions had reduced fears of supply disruptions, contributing to lower oil prices and strengthening expectations of a cut in petroleum prices.
US-Iran Deal Improves Supply Outlook
According to reports, the United States and Iran released the text of an interim agreement on Wednesday aimed at ending the conflict, reopening the Strait of Hormuz and easing sanctions on Iranian oil exports.
The development is expected to restore additional crude supplies to international markets and ease concerns surrounding one of the world’s most important energy shipping routes.
Analysts said increased oil availability and improved shipping conditions could continue to exert downward pressure on global crude prices, supporting further reductions in petroleum prices.
Petroleum Price Cut Expected
A reduction in petroleum prices would provide relief to households, transport operators and businesses facing elevated fuel and logistics costs.
Lower petroleum prices could also help ease inflationary pressures by reducing transportation and production expenses across various sectors of the economy.
With international oil prices trending lower and the government committed to transferring the benefit to consumers, market observers expect a notable decline in petroleum prices in the next pricing review.
