Pakistan Petrol Prices May Drop by Up to Rs 100 Per Litre Amid Global Oil Crash

Pakistan is likely to witness a significant reduction in petroleum product prices in the coming days, with an expected cut of Rs 70 to Rs 100 per litre, according to market indications.

The expected relief follows the current steep drop in global crude oil prices amid a lull in geopolitical tensions, such as the possible Iran–US ceasefire and agreement. The developments have resulted in a decline in international oil prices and offered an opportunity for price reductions in Pakistan.

International crude oil prices have fallen more than 7 percent in recent trading sessions, according to sources. The oil price for the U.S. crude is now around $79 a barrel, while the price for the Brent crude is around $81 a barrel.

No formal work has completed yet on new prices for petroleum products, officials said in the Petroleum Division. But there are discussions about the possibility of passing the benefits of lower global prices directly to consumers.

Moreover, Prime Minister Shehbaz Sharif is eager to see any drop in global oil prices reflected in rates at home to ease the burden on the public, sources added.

Pakistan follows a mechanism where petroleum product prices adjusted in line with fluctuations in international crude prices as well as exchange rates at regular intervals. The final decision is likely to follow, once approved by the Prime Minister.

It should also noted that in recent times of global tension, crude oil prices have spiked above $126/barrel but have come down significantly over the past few days.

Pakistan could cut petrol and diesel prices significantly during the next pricing cycle if oil markets keep falling, experts said.

Minister of State for Law and Justice Barrister Aqeel Malik also in a television address indicated that the price of fuel may undergo significant cut from Rs 100 to 150 per litre depending on the global market price and the final policy decision.