Petrol, Diesel prices may drop sharply

April 08, 2026 (MLN): A sharp decline of around 15% in global crude oil prices has created significant fiscal space for economic managers in Pakistan, raising expectations of a substantial reduction in domestic petroleum product prices in the upcoming revision.

According to initial working estimates, the price of high-speed diesel (HSD) could witness a massive cut of up to Rs100 per liter, while petrol prices may be reduced by around Rs60 per liter.

Currently, Brent crude futures is down by $15.24, or 13.95%, to $94.03 per barrel, according to data by Mettis Global.

West Texas Intermediate (WTI) crude futures decreased by $18.33, or 16.61%, to $94.19 per barrel by [03:20 pm] PST.

The potential relief comes amid easing international oil markets, where crude oil prices have retreated due to improved supply dynamics and reduced geopolitical risk premiums.

The expected price adjustment, if implemented, would provide much-needed relief to consumers and businesses, particularly in transport, agriculture, and industrial sectors that are heavily dependent on diesel.

Lower petrol prices would also ease the burden on middle-income households already grappling with inflationary pressures.

The recent decline in oil prices has been further accelerated by geopolitical developments, particularly after the United States temporarily halted military action against Iran, signaling a possible de-escalation in tensions that had disrupted global energy markets.

The move eased fears surrounding supply disruptions, especially through the critical Strait of Hormuz, a key transit route for global oil shipments.

Market sentiment improved following the declaration by U.S. President Donald Trump regarding a two-week pause in hostilities, contingent on Iran ensuring safe passage through the Strait.

The development has reduced risk premiums in oil prices, contributing to the sharp correction in global crude markets and strengthening the case for a significant reduction in domestic fuel prices in Pakistan.

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