LAHORE – The recent announcement of a peace agreement between the United States and Iran has sparked hopes of economic relief, particularly in Pakistan, as global oil prices declined sharply ahead of the government’s next fuel price review.
International crude oil markets witnessed a significant drop on Monday after reports of a US-Iran peace deal aimed at ending hostilities. Major oil benchmarks fell by more than four percent.
West Texas Intermediate (WTI) crude declined to $80.76 per barrel, down 4.85%, while Brent crude fell to $83.52 per barrel, a decrease of 4.36%. Murban crude also dropped 4.85% to $83.02 per barrel.
Pakistan Announces US-Iran Peace Agreement
The development came after Pakistan Prime Minister Shehbaz Sharif announced on social media that the United States and Iran had reached a peace agreement following intensive negotiations.
According to the announcement, the formal signing ceremony is scheduled to take place in Switzerland on June 19.
Current Petrol Prices in Pakistan
Petrol and diesel prices currently remain elevated, with petrol (super) priced at Rs373.78 per litre and high-speed diesel available at Rs378.78 per litre.
What the Pakistanis Expect?
With global oil prices moving lower, attention has shifted to the federal government’s upcoming fuel price review. Pakistan is expected to announce revised petroleum prices on June 19, with any new rates taking effect from June 20.
Many citizens are now hoping the decline in international oil prices will translate into relief at the pump.
Basharat, a resident of Lahore, said the government should significantly reduce fuel prices, arguing that rates had increased sharply following the outbreak of tensions between the United States and Iran. He called for petrol prices to be brought down to at least Rs300 per litre.
Muhammad Ayub, a motorcycle rickshaw driver, said fuel prices had risen substantially during the conflict period and expressed the view that any reduction should reflect the earlier increases. He urged the government to pass on the benefit of lower global oil prices to consumers.
