ISLAMABAD: Pakistan will announce a “significant” reduction in fuel prices today, Prime Minister Shehbaz Sharif said on Friday, signalling relief for consumers as global oil prices continue to decrease after the United States-Iran peace deal.
Oil prices have continued to fall as reports emerged this week about the US-Iran agreement to end their war, though the rates slightly rose on Friday as the prospect of a lasting US-Iran truce was clouded after peace talks in Switzerland were called off and as Israel stepped up attacks on Lebanon.
By 0645 GMT on Friday, Brent crude futures gained 51 cents, or 0.64 percent, to $80.36 a barrel, and US West Texas Intermediate crude rose $1.28, or 1.7 percent, to $77.88 a barrel, with the front-month July contract expiring on Monday. Both contracts were headed for a weekly loss of about 8 percent. On Thursday, both benchmarks touched their lowest since early March.
Speaking at parliament, PM Sharif, whose country led the diplomatic push toward ending the US-Iran war, expressed his hopes that global oil prices will further reduce over the coming days, which would lead to economic prosperity in the region.
“Our government promised that when the [global] prices reduced, we would return every penny to the nation,” Sharif recalled, before adding: “So today, a significant cut will be announced.”
The statement came a day after Pakistani media reported the ex-refinery cost of petrol, which does not include taxes, levies, freight charges or dealer margins, had declined to Rs225 ($0.81) per liter in the country from Rs245 ($0.88) a week earlier, while diesel’s ex-refinery cost had dropped to Rs269 ($0.97) per liter from Rs304 ($1.09) during the same period.
Islamabad continued to pursue contingency arrangements to avoid supply shortages throughout the US-Iran conflict, amid peak summer demand.
Also on Thursday, Pakistan’s Petroleum Minister Ali Pervaiz Malik said Islamabad was 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.
