ISLAMABAD: Pakistan’s Petroleum Minister Ali Pervaiz Malik on Thursday hinted at a reduction in fuel prices in the country, following the signing of a deal by the United States and Iran to end their war.
Oil prices fell more than $1 per barrel on Thursday after the US and Iran signed an interim agreement that would end their war, reopen the Strait of Hormuz and waive US sanctions on Tehran’s oil, boosting the oil supply outlook.
Brent crude futures were down $1.64, or 2.06 percent, at $77.91 a barrel as of 0427 GMT, and US West Texas Intermediate fell $1.80, or 2.34 percent, to $74.99 a barrel.
The ex-refinery cost of petrol, which does not include taxes, levies, freight charges or dealer margins, has declined to Rs225 ($0.81) per liter from Rs245 ($0.88) a week earlier, while diesel’s ex-refinery cost has dropped to Rs269 ($0.97) per liter from Rs304 ($1.09) during the same period, according to local media.
“International oil prices are falling, and the Prime Minister has directed that this benefit be passed on to the public immediately,” Malik said in a post on X.
Pakistan is formulating a comprehensive energy security policy, following disruptions to oil and gas supplies due to the US-Iran war that began on Feb. 28.
“A high-level committee has also been formed to devise a transparent weekly pricing formula for the public, so that in the future, whenever needed, the public can understand the reasons for changes in prices,” Malik said, adding this would be done in consultation with all stakeholders.
All eyes are now on the strait, through which a fifth of world oil normally passes and which Tehran effectively closed after the US and Israel launched their war.
Pakistan, which played a key mediatory role toward ending the war and hosted rare, direct talks between both sides in April, continued to pursue contingency arrangements to avoid supply shortages throughout the conflict, amid peak summer demand.
“Islamabad MoU (memorandum of understanding) shall enter into force with immediate effect and as a first step, Islamic Republic of Iran will instantly reopen the Strait of Hormuz and the United States of America will immediately lift the naval blockade,” Prime Minister Shehbaz Sharif said, following the signing of the peace deal.
