ISLAMABAD – Petrol prices in Pakistan are likely to see a major decrease today (Monday) amid a significant reduction in global oil prices following a pause in hostilities between the United States and Iran.
Oil prices fell by more than 5% after the two countries halted strikes over the weekend, raising hopes that a diplomatic solution could ease tensions and allow shipping through the Strait of Hormuz to resume.
Brent crude futures dropped $5.70, or about 5.9%, to $91.08 per barrel, after briefly falling below the $90 mark during trading. US West Texas Intermediate (WTI) crude declined $4.80, or around 5.4%, to $84.51 per barrel.
The sharp decline in global oil prices has increased expectations of a substantial reduction in petroleum prices in Pakistan.
The Oil and Gas Regulatory Authority (OGRA) is expected to determine revised domestic fuel prices in line with international market trends.
The anticipated relief comes after petroleum prices in Pakistan increased by as much as Rs60 per litre over the past week, with petrol becoming more expensive by Rs24 per litre and diesel rising by more than Rs60 per litre. The government had attributed those increases to higher international crude oil prices and rising import costs.
Earlier on July 25, the government has decided to keep petroleum prices unchanged for the next two days until July 27 following five consecutive days of price increases.
According to a notification issued by the Petroleum Division of the Ministry of Energy, fuel prices notified on July 25 will remain in effect until July 27.
Currently, the petrol price stands at Rs335.18 per litre while the high speed diesel is available for Rs383.46 per litre.
Meanwhile, oil marketing companies have expressed concerns over a proposed mechanism to revise petroleum prices on a daily basis, saying it could affect business planning, inventory management and supply chains.
They have called for consultations with all stakeholders before any changes are introduced.
