Pakistan Anticipates Further Decline in Refined Fuel Prices and Commits to Passing Savings to Consumers

Islamabad: Petroleum Minister Ali Pervaiz Malik announced on Sunday that worldwide refined fuel prices are projected to fall further, and the government pledges to convey the resulting savings to consumers.

Since February, Pakistan’s government has raised petroleum product prices repeatedly, a move prompted by the US‑Iran conflict that disrupted energy supplies and shipping through the Strait of Hormuz, pushing global oil prices higher.

Earlier this month, Islamabad cut fuel prices by up to Rs74 per liter following a US‑Iran peace agreement that eased pressure on global oil markets. Nonetheless, consumers are awaiting additional relief as Brent crude prices decline to $72 per barrel worldwide.

Malik said that a sharp decline in global crude oil prices has led the government to reduce petrol and diesel prices this month. He added that Pakistan will pass on further benefits to consumers once worldwide refined petroleum product prices also fall.

“Crude oil prices have dropped markedly, and refined petroleum product prices are expected to follow suit, allowing additional relief beyond the current reduction of more than Rs155 per liter for petrol and Rs200 per liter for diesel,” Malik wrote on X.

In a previous post on Saturday, Malik explained that petrol prices in Pakistan have historically been set based on Platts benchmark rates.

Platts benchmark prices are widely used in the fuel industry as a reference for pricing both physical and financial contracts.

The minister noted that petrol prices were $76 per barrel on February 27, before the US‑Iran war began, rose to $136 per barrel by April 2, and fell again to $92 per barrel on June 27.

Similarly, diesel prices were $89 per barrel on February 27, climbed to $284 per barrel on April 2, and dropped to $105 per barrel on June 26.

“As prices adjust in line with crude oil, which is now at pre‑war levels, the benefits will be transferred to consumers,” he said.

Fuel prices are closely monitored in Pakistan because they directly affect transport costs, electricity generation, and inflation, thereby influencing overall consumer prices.

Source link