Federal Cabinet of Pakistan announced that prices for petroleum products will remain unchanged. The savings from this policy will be redirected toward the development of infrastructure, including an enhanced road network, in the underserved province of Balochistan.
Given declining international oil prices, the market had widely anticipated a significant reduction of more than PKR 8 per liter in fuel costs. The savings of PKR 8/liter would come to PKR 7-8 billion.
However, the government’s announcement dispelled these expectations, maintaining current rates in a move aimed at prioritizing long-term investments in regional development.
During the last fuel price adjustment on March 31, 2025, the federal government introduced a modest decrease in petrol prices, cutting them by PKR 1 per liter. This brought the rate down to PKR 254.63 per liter from PKR 255.63.
However, the cost of high-speed diesel remained steady at PKR 258.64 per liter. Earlier, on March 15, the government had opted to keep petroleum prices unchanged, citing economic stabilization efforts.
Brent crude has declined from the high of $75 per barrel on April
Goldman Sachs expects oil prices to decline through the end of this year and next year because of the rising risk of a recession and higher supply from the OPEC+ group.
The bank expects Brent and WTI oil prices to edge down, averaging $63 and $59 a barrel, respectively, for the remainder of 2025, and $58 and $55 in 2026.
