Pakistan Lowers Fuel Prices as Government Negotiates Protest Pause

The Government of Pakistan reduced petrol and high-speed diesel prices effective September 23, 2026, following a period of high volatility. Petrol prices fell by Rs1.70 per litre to Rs392.05, and high-speed diesel decreased by Rs3.12 per litre to Rs418.96. The Petroleum Division of Pakistan attributed the decline to falling Brent and WTI crude prices, driven by signals that Iran might reopen the Strait of Hormuz and Saudi Arabia's restart of its East-West Pipeline.

These reductions followed a price hike on September 22, when the Oil and Gas Regulatory Authority of Pakistan had increased petrol by Rs4.61 per litre to a peak of Rs393.75. Throughout September, petrol prices fluctuated significantly, ranging from a low of Rs375.82 on September 13 to the September 22 peak.

The price adjustments occurred alongside political negotiations to stop a super long march led by Jamaat-e-Islami. To prevent the march from reaching Islamabad, the government proposed a public relief package and the one-year abolition of the petroleum levy. Hafiz Naeem-ur-Rehman, Emir of Jamaat-e-Islami, announced the postponement of the march pending a meeting with Prime Minister Shehbaz Sharif to discuss the petroleum levy and issues regarding Independent Power Producers.