International gasoil prices retreat after March spike

April 01, 2026 (MLN): International gasoil (High-Speed Diesel) prices tumbled sharply on Wednesday, shedding $82 per barrel in a single day as de-escalation shows from both Washington and Tehran eased the war premium that had driven fuel costs to historic highs over the past month.

According to a report by AKD Securities Limited, gasoil which had surged to a peak of $247 per barrel in late March fell to $151/bbl on the opening day of April.

Gasoline prices also corrected, declining by US$5/bbl during the same session.

The dramatic spike in fuel prices had begun in early March, when escalating geopolitical tensions in the Middle East sent shockwaves through global energy markets.

Both gasoil and gasoline, which had traded in a relatively stable band around $75–90/bbl through January and February, nearly tripled in value over the course of the month.

The sharp reversal now opens a potential fiscal window for Pakistan's government.

AKD Securities noted that the $82/bbl decline in diesel prices would allow authorities to reduce the fuel subsidy to Rs39 per litre, down significantly from the current Rs204 per litre providing meaningful relief to the national exchequer at a time of tight fiscal constraints.

It is worth noting that the government is currently levying a Petroleum Development Levy (PDL) of Rs55.2 per litre on diesel.

Whether the price relief proves durable will depend heavily on how the geopolitical situation between the United States and Iran continues to develop in the coming days.

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