ISLAMABAD – Big relief for Pakistanis as the government reduced diesel prices by Rs32.12 per litre, bringing the new rate to Rs353.43. The cut, effective from midnight, comes amid a drop in global oil prices and is expected to ease transportation and living costs for the public.
Prime Minister Shehbaz Sharif has approved a sharp reduction in diesel prices, delivering immediate impact for consumers already struggling with fuel costs.
The government has directed that the full benefit of this reduction must be passed on to the public without delay, with the new pricing set to take effect from midnight.
The dramatic price cut comes at a time of extreme volatility in global oil markets, triggered by rapidly shifting geopolitical conditions in the Middle East.
Oil prices plunged sharply on Friday after Iran declared the Strait of Hormuz open for commercial shipping during a ceasefire period, easing fears of a prolonged disruption in one of the world’s most critical energy supply routes. The development immediately reshaped global market sentiment.
Benchmark crude prices reacted violently to the news. Brent crude futures collapsed by nearly 13%, while U.S. West Texas Intermediate also recorded a steep decline, marking its biggest single-day fall in more than a month. Analysts say the sudden drop reflects a rapid easing of geopolitical risk premiums and renewed expectations of progress in U.S.–Iran diplomatic engagement.
Strait of Hormuz, a vital artery for global oil and liquefied natural gas shipments, had faced months of heightened tension and disruption due to regional conflict. Its reopening under a temporary ceasefire arrangement has been described as a key turning point for global energy flows.
Despite dramatic market crash in oil prices, experts caution that uncertainty still looms large. Questions remain over how quickly normal shipping volumes will resume and whether the ceasefire, and the calmer market conditions it triggered, will hold in the coming weeks.
Crude Oil Prices Crash Nearly 10% to $84 as Iran Opens Strait of Hormuz
