ISLAMABAD: The government is expected to announce a reduction in petroleum product prices on Thursday, following a decline in global oil rates after a ceasefire agreement between Iran and the United States.
The expected cut will come as international crude prices eased on Thursday, offering room for domestic adjustment in fuel rates under Pakistan’s pricing mechanism, which is linked to global market trends. Oil prices slid 2 per cent on Thursday to their lowest levels since the start of the Iran war, as news of a US–Iran interim deal to end the conflict, reopen the Strait of Hormuz, and ease sanctions on Tehran lifted global supply prospects.
Brent crude fell $1.59 to $77.96 a barrel, while WTI dropped $1.83 to $74.96, marking their weakest points since early March following the initial US–Israeli strikes on Iran.
Minister for Petroleum Ali Pervaiz Malik said Prime Minister Shehbaz Sharif has directed authorities to immediately pass on the benefit of falling international oil prices to consumers. He said that a high-level committee had been formed to develop a transparent weekly pricing formula for petroleum products to improve predictability and public understanding of price changes.
“The prime minister has directed that the benefit of lower global oil prices should be transferred to the public without delay,” Malik said in a tweet on X. He said the proposed formula would be developed after consultations with all relevant stakeholders and would help citizens understand the rationale behind price fluctuations.
The minister said that Pakistan’s fuel supply chain had remained stable despite regional tensions, adding that the government was reviewing its broader energy security framework. “Multiple initiatives are under way to safeguard national interests and strengthen energy security,” he said, adding that the government appreciated the cooperation of stakeholders and the public during recent volatility.
He also said diplomatic efforts by the prime minister, field marshal, foreign minister and interior minister were yielding results, without giving further details. The announcement of the new pricing structure comes amid ongoing efforts by the government to reform fuel pricing mechanisms and enhance transparency in pass-through of international price changes.
The expected price reduction will provide much-needed relief to consumers who have been grappling with high inflation and rising transportation costs. Lower fuel prices are also expected to ease pressure on the overall inflation rate, benefiting households and businesses alike. The government’s commitment to transparent pricing and timely pass-through of global price changes reflects its focus on public welfare and economic stability. The new weekly pricing formula, once implemented, is expected to bring greater predictability and fairness to fuel pricing in Pakistan. Analysts have welcomed the move, saying it will help build trust between the government and the public. The government has also reassured citizens that fuel supplies remain secure and that the country’s energy security framework is being strengthened to withstand future challenges. The diplomatic efforts that contributed to the US-Iran ceasefire have been widely praised, with Pakistan playing a key role in facilitating the breakthrough. The reduction in petroleum prices is seen as a tangible benefit of these diplomatic achievements. The government remains committed to ensuring that the benefits of global developments reach the common citizen. The petroleum minister has urged the public to stay informed through official channels and avoid speculation regarding fuel prices. The formal announcement of the new prices is expected later today. Consumers across the country are eagerly awaiting the relief that lower fuel prices will bring. The government’s proactive approach to energy sector reforms continues to yield positive results. The future looks promising as Pakistan navigates the evolving global energy landscape with resilience and foresight. The nation looks forward to sustained stability and prosperity. The government’s efforts are a testament to its commitment to the well-being of the people. The reduction in petroleum prices is a welcome development for the economy and the common man.
