Global oil prices extended losses on Tuesday as oversupply concerns weighed on energy markets, pushing benchmarks to their lowest levels since late February. Brent crude fell 1.3 percent to around $70.67 per barrel, while U.S. West Texas Intermediate declined by the same margin to $67.66 per barrel, according to market data. Traders linked the drop to rising supply as tanker traffic through the Strait of Hormuz continued to recover following a fragile U.S.-brokered de-escalation. Analysts said higher Iranian and Russian exports lifted seaborne inventories to multi-month highs, adding further pressure on prices.
Despite the sharp retreat in international markets, consumers in Pakistan have yet to see meaningful relief at fuel stations. The government had raised petrol and diesel prices on Feb. 28 to reflect the initial shock from the conflict, pushing rates well above pre-war levels. More than four months later, domestic prices remain elevated even after a record reduction announced on June 20, when petrol fell by 74 rupees and diesel by 67 rupees per litre. Prices have remained unchanged since, with the next review expected in early July.
The slow pass-through has drawn criticism from analysts and commentators, including voices usually supportive of the government. Officials defended the pricing mechanism, stating that fuel rates depend on global refined product benchmarks, exchange rate movements, and taxes that make up a significant portion of retail prices.
