Countries cut fuel prices as easing Iran crisis lowers global crude costs

Multiple countries rolled back fuel prices effective July 1, 2026, as a decline in global crude oil prices — driven by progress toward ending the conflict involving Iran and the reopening of the Strait of Hormuz — brought relief to consumers from South Asia to the Persian Gulf and sub-Saharan Africa.

Nepal and the UAE Lead Price Cuts

Nepal rolled back fuel prices by up to 17 percent, according to Reuters, as state-owned Nepal Oil Corporation reduced retail petrol prices by 9.2 percent, diesel by 13.3 percent, and jet fuel by as much as 17 percent for flights from Bhairahawa. Under the revised rates effective Wednesday, petrol now costs Rs 197 per litre and diesel Rs 195 per litre in Kathmandu, while LPG cooking gas fell by Rs 100 per cylinder.dawn+2

In the UAE, the Fuel Price Committee ended four consecutive months of increases by cutting all fuel grades. Super 98 petrol dropped to Dh3.40 per litre from Dh3.95 in June, while diesel fell by 73 fils to Dh3.60 — a decline of nearly 17 percent, according to Khaleej Times. Fuel prices in the UAE had surged more than 60 percent since the outbreak of the Middle East conflict in late February.khaleejtimes+1

Africa Feels the Relief

Tanzania's Energy and Water Utilities Regulatory Authority confirmed that fuel price caps decreased from July 1, with petrol in Dar es Salaam falling to TSh3,990 per litre — down TSh96 — and diesel dropping TSh151 per litre. Energy Minister Deogratius Ndejembi had announced the reductions on June 26, attributing them to easing geopolitical tensions.facebook+2

In Ghana, GOIL posted new prices effective Wednesday, cutting Super XP to GHc12.79 per litre from GHc13.87 and Diesel XP to GHc15.35 from GHc15.95. Nigeria's NNPC also continued a downward trend, having cut pump prices twice in the final week of June — reducing petrol by a cumulative N125 per litre in Abuja to N1,210 — as Dangote Refinery lowered its ex-depot price amid falling crude.goil+2

Pakistan Signals Further Cuts Ahead

Pakistan had already delivered substantial reductions in mid-June, slashing petrol by Rs74 per litre and diesel by Rs67 after Prime Minister Shehbaz Sharif directed that the benefits of the US-Iran peace agreement be passed on immediately. Petroleum Minister Ali Pervaiz Malik said on June 27 that refined fuel prices "are also expected to decline accordingly, enabling relief beyond the current reduction of more than Rs155 per litre on petrol and Rs200 per litre on diesel to be passed on soon".dawn+2

The coordinated global relief follows months in which the closure of the Strait of Hormuz sent energy costs to multi-year highs, with ripple effects from airline surcharges in Nepal to record pump prices in Nigeria and Tanzania.thecitizen+2