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Jun 18, 2026 Major3
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PM Shehbaz orders immediate fuel price cut as Iran-US deal drives oil prices down
Prime Minister Shehbaz Sharif has ordered an immediate reduction in fuel prices in Pakistan following a decline in international oil prices, triggered by a US-Iran interim agreement that eases Middle East tensions and boosts oil supply. Petroleum Minister Ali Pervaiz Malik announced the decision and the formation of a committee for a transparent weekly pricing mechanism. Oil prices fell more than $2 per barrel after the deal.
Quick Facts
Who
Ali Pervaiz Malik
What
Ordered immediate fuel price relief
When
Thursday
Where
Pakistan
- Ordered immediate fuel price relief
- Formed a high-level committee for weekly fuel pricing mechanism
- Signed interim agreement between US and Iran
- Oil prices fell more than $2 per barrel
- Ali Pervaiz Malik
Petroleum Minister Ali Pervaiz Malik announced on Thursday that Prime Minister Shehbaz Sharif has directed authorities to immediately pass on the benefit of falling international oil prices to consumers. The move follows a significant diplomatic breakthrough between the United States and Iran, which has eased tensions in the Middle East and boosted the global oil supply outlook.
In a post on social media, Malik stated that “international oil prices are falling, and the prime minister has directed that this benefit be passed on to the public immediately.” He added that a high-level committee has been formed to devise a transparent weekly fuel pricing mechanism, which will be completed in full consultation with all stakeholders.
Malik credited the diplomatic efforts of Prime Minister Shehbaz, Field Marshal Asim Munir, Deputy Prime Minister and Foreign Minister Ishaq Dar, and Interior Minister Mohsin Naqvi for helping to broker the agreement between Iran and the United States. “The efforts are bearing fruit, as Iran and the United States are moving toward signing a ceasefire agreement,” he said.
The minister thanked industry partners and the public for maintaining the oil supply chain without major disruptions during recent uncertainty. He also noted that the government is reviewing its energy security paradigm and plans to introduce measures in the coming months to safeguard national interests.
Oil prices fell sharply on Thursday, with Brent crude dropping by more than $2 per barrel to $77.41 and US West Texas Intermediate declining to $74.43. The decline came after the US and Iran signed an interim agreement to end hostilities, reopen the Strait of Hormuz, and waive US sanctions on Iranian oil. President Donald Trump earlier indicated that oil prices would soon return to levels seen four months ago.
In response to previous global price surges, Pakistan had raised domestic fuel prices by more than 50%, with petrol reaching a record Rs458.4 per litre in April. The government has since reduced prices several times, including a recent Rs4 per litre cut on petrol and Rs2 per litre on high-speed diesel.
Why This Matters
This decision directly cuts fuel costs for Pakistani consumers, who faced record-high petrol prices in April. The weekly pricing mechanism promises more transparency and regular price adjustments, potentially stabilizing household and business energy costs. The broader Iran-US deal also signals reduced geopolitical risk in the Middle East, which could lead to sustained lower oil prices globally.
Timeline & Sources
Mar 2, 2026
WireOil prices surge after US and Israel begin attacking Iran.
Mar 4, 2026
WireWTI at lowest since March 4.
Jun 5, 2026
WireGovernment reduces petrol price by Rs4 per litre.
Jun 12, 2026
WireGovernment cuts petrol by Rs4 per litre and diesel by Rs2 per litre.
Jun 18, 2026
WirePM Shehbaz orders immediate fuel price relief; US and Iran sign interim agreement; oil prices fall more than $2 per barrel.
Entities
Sources
- PM Shehbaz directs immediate fuel price relief as global oil prices fall: petroleum ministerDawnMediaJun 18, 2026
- PM orders immediate fuel price relief for consumers on falling global prices: petroleum ministerThe Express TribuneMediaJun 18, 2026
- PM Shehbaz directs immediate fuel price relief as global oil prices fall: petroleum ministerDawnMediaJun 18, 2026