ISLAMABAD: The government is poised to announce a reduction in petroleum product prices on Thursday, responding to a decline in global oil rates triggered by a ceasefire agreement between Iran and the United States.
This anticipated price cut follows a drop in international crude prices, which has created an opportunity for adjustments in domestic fuel rates under Pakistan’s pricing mechanism, closely linked to global market trends.
Oil prices fell by 2 percent on Thursday, reaching their lowest levels since the onset of the Iran conflict. The interim deal between the US and Iran aims to end hostilities, reopen the Strait of Hormuz, and ease sanctions on Tehran, thereby improving global supply prospects.
Brent crude prices decreased by $1.59 to $77.96 per barrel, while WTI crude dropped $1.83 to $74.96 per barrel. These figures represent the weakest points since early March, following the initial US-Israeli strikes on Iran.
Meanwhile, Petroleum Minister Ali Pervaiz Malik stated that Prime Minister Shehbaz Sharif has instructed authorities to promptly pass the benefits of falling international oil prices on to consumers.
In a significant development, a high-level committee has been established to formulate a transparent weekly pricing formula for petroleum products. This initiative aims to enhance predictability and public comprehension of price changes.
“The prime minister has directed that the advantage of lower global oil prices should be transferred to the public without delay,” Malik conveyed via a post on X.
The minister added that the proposed pricing formula will be developed after consultations with all relevant stakeholders, helping citizens better understand the reasons behind price fluctuations.
He also noted that Pakistan’s fuel supply chain has remained stable despite ongoing regional tensions, with the government currently reviewing its broader energy security framework.
“Multiple initiatives are underway to protect national interests and strengthen energy security,” Malik said, expressing appreciation for the cooperation of stakeholders and the public during recent market volatility.
Furthermore, he highlighted that diplomatic efforts by the prime minister, field marshal, foreign minister, and interior minister are producing positive outcomes, though he did not provide additional details.
This announcement of a new pricing structure coincides with the government’s ongoing efforts to reform fuel pricing mechanisms and improve transparency in reflecting international price changes.
