Government Reviews Major Fuel Relief Plan
Petroleum prices in Pakistan may drop by more than Rs55 per litre after Prime Minister Shehbaz Sharif ordered a review of the March 7 fuel price increase.
Sources said the Petroleum Division, Pakistan State Oil, and OGRA have started preparing a working paper. The paper will assess the impact of a major cut in domestic fuel prices.
The prime minister reportedly directed Petroleum Minister Ali Pervaiz Malik to examine options for reversing the earlier increase. He expressed concern over the size of the previous hike.
Global Oil Prices Fall Sharply
Officials are reviewing ways to pass on the benefit of lower international oil prices to consumers. Government circles are considering a reduction of more than Rs55 per liter if market calculations support the move.
Sources said Arab Light crude, used as a key benchmark for Pakistan’s fuel pricing, has fallen by around $16 per barrel in one week. The price is now close to $80 per barrel.
The sharp decline has raised public expectations for a major fuel price cut in the next pricing review.
Oil Companies Seek Phased Reduction
However, some oil marketing companies have raised concerns over a sudden large cut. Industry stakeholders are reportedly lobbying policymakers to avoid a one-time reduction of more than Rs55 per litre.
They argue that companies holding fuel stocks bought at higher prices could face inventory losses. Some firms have proposed that any reduction should be introduced in phases.
Officials said different pricing options are still under review. No final decision has been made yet.
If approved, the fuel price cut could provide major relief to consumers and help reduce inflationary pressure across the economy.
