ISLAMABAD: Pakistan could witness a major reduction in petroleum prices after global oil markets declined following positive developments in Iran-US relations and reports of a ceasefire agreement. Officials said the government is considering passing the benefit of lower international oil prices directly to consumers.
According to sources in the Petroleum Division, petrol and diesel prices may decrease by Rs70 to Rs100 per litre. However, officials clarified that no final pricing calculation has been completed.
Meanwhile, consultations are underway to determine the extent of the possible reduction under the government’s petroleum pricing mechanism. Authorities said the final adjustment will depend on official calculations and policy approval.
Sources added that Prime Minister Shehbaz Sharif wants consumers to benefit from the recent decline in global energy prices. Therefore, relevant ministries are reviewing international market trends before finalising recommendations.
Once the review is completed, officials will prepare detailed pricing calculations and submit them for approval. Subsequently, the government will formally announce any reduction in petroleum prices after the prime minister grants final approval.
Furthermore, government sources stressed that several factors will influence the final price adjustment. These include international crude oil prices, exchange rate movements, taxation policies, and the existing petroleum pricing formula.
Officials also noted that fluctuations in global markets could affect the final decision before the next fuel price revision takes effect. Consequently, authorities will continue monitoring international developments during the review process.
If approved, the proposed reduction would rank among the largest cuts in fuel prices in recent years. The decrease could provide meaningful financial relief to households, transport operators, businesses, and industrial consumers.
Moreover, lower fuel prices could help reduce transportation costs and ease inflationary pressures across multiple sectors of the economy. Analysts believe cheaper petroleum products may also improve business activity and consumer purchasing power if global oil prices remain stable.
The government is expected to announce the final decision after completing the pricing review and securing all necessary approvals under the existing petroleum pricing framework.
