Islamabad, Pakistan – Web Desk: Prime Minister Shehbaz Sharif is expected to announce a reduction in petroleum product prices today, following a significant decline in global oil prices after the US-Iran peace agreement .
According to sources, the government has been working on passing the benefit of falling international crude prices to consumers, with a transparent weekly pricing formula being developed by a high-level committee formed earlier this week .
Minister’s Earlier Statement
Federal Minister for Petroleum Ali Pervez Malik had previously stated that the government would bring “good news” regarding a reduction in petroleum prices, acknowledging that the public had faced difficulties due to regional tensions during the US-Iran conflict .
The minister had said that the availability of Iranian crude oil in global markets could help ease prices, adding that “there is a promise and the prime minister’s direction that we will reduce prices to the extent possible” .
Price Context
The current petrol price stands at Rs373.78 per litre, while high-speed diesel is priced at Rs378.78 per litre in Pakistan .
During the Iran war, fuel prices had surged significantly. In April, petrol prices were raised by Rs137 per litre to a record Rs458.4 per litre, before the government announced a reduction in petroleum levy to bring prices down .
The international benchmark Brent crude recently dived below $80 to the lowest level since the opening salvos of the US-Iran conflict in March, as news of Iranian fuel potentially returning to global markets promised inflation relief .
Government’s Commitment
Earlier this week, Prime Minister Shehbaz had stated that the benefits of the government’s economic strategy would ultimately reach the public once peace is fully restored in the region and normal conditions are re-established . He had also directed that the benefit of the decrease in global oil prices be immediately passed on to the public .
The government has been reviewing petroleum prices on a weekly basis since the US-Israeli conflict with Iran began on February 28 .
