Govt signals petroleum price cut as global oil rates ease

ISLAMABAD: Pakistani consumers may soon see lower petrol prices as easing US-Iran tensions push global oil prices down, with the government working on a mechanism to swiftly pass any reduction on to the public.

Petroleum Minister Ali Pervaiz Malik said consumers across the country could soon receive relief as de-escalation between Iran and the United States had begun lowering international oil prices.

He added that the government was developing a transparent mechanism to ensure that the benefit of lower global prices was passed on to consumers.

In a statement posted on X, the petroleum minister said diplomatic efforts led by Prime Minister Shehbaz Sharif, Field Marshal Asim Munir, Deputy Prime Minister and Foreign Minister Ishaq Dar, and Interior Minister Mohsin Naqvi were beginning to produce results, with Iran and the United States moving towards a ceasefire agreement.

He said signs of de-escalation had already affected global energy markets, leading to a decline in international oil prices and improving the prospects of relief for consumers.

Global oil prices ​fell by more than $2 per barrel on Thursday after the U.S. and Iran signed an interim agreement that ‌would end the Iran war, reopen the Strait of Hormuz, and waive U.S. sanctions on Tehran's oil, boosting the oil supply outlook.

Brent crude futures were down $2.14, or 2.69%, at $77.41 a barrel as of 0616 GMT, and U.S. West Texas Intermediate fell $2.36, or 3.07%, to $74.43 a barrel.

Ali Pervaiz Malik said the prime minister had directed the relevant authorities to ensure that any reduction in international oil prices was promptly passed on to consumers.

He added that the government would develop a transparent pricing formula for petroleum products to ensure that the public received the full benefit of changes in global oil markets.

The minister announced that a high-level committee had been constituted to formulate a mechanism for determining petroleum product prices on a weekly basis. He said the new policy framework would be prepared in consultation with all stakeholders.

According to official sources, the committee comprises Petroleum Minister Ali Pervaiz Malik, Law Minister Azam Nazeer Tarar, Minister for Economic Affairs Ahad Khan Cheema, Minister of State for Finance Bilal Azhar Kayani, National Coordinator NCMC Lt Gen Muhammad Zafar Iqbal, Petroleum Secretary Momin Agha, Finance Secretary Imdadullah Bosal, OGRA Chairman Masroor Khan, FBR Chairman Rashid Mahmood Langrial, Pakistan State Oil Managing Director Syed Muhammad Taha, former PSO Managing Director Syed Naeem Ghauri, and energy expert Zahid Mir.

Ali Pervaiz Malik said the government would keep the public informed about the reasons behind any increase or decrease in petroleum product prices to improve transparency and public understanding of fuel-pricing decisions.

Referring to recent regional developments, he said Pakistan had maintained uninterrupted oil supplies despite challenges in the region.

He credited the government’s strategy and close coordination with industry stakeholders for protecting the country’s fuel supply chain during a period of heightened uncertainty.

The petroleum minister said the government was also carrying out a comprehensive review of Pakistan’s energy security framework to strengthen preparedness against future disruptions.

He expressed confidence that Pakistan would continue to overcome challenges through national unity, effective planning and coordinated policymaking.

The minister reaffirmed the government’s commitment to protecting consumers and ensuring energy security.