Pakistanis may receive some relief as the Petrol price is expected to decrease following a sharp decline in international crude oil prices. According to sources, the government is considering reducing the petrol price by Rs2 per litre in the upcoming fortnightly price review.
If the proposal is approved, the revised Petrol price will come into effect from July 4. Under the expected revision, petrol could be sold at Rs297 per litre, compared to the current rate. Meanwhile, the price of high-speed diesel is likely to remain unchanged at Rs311 per litre.
The possible reduction comes after global oil markets recorded significant losses over the past week. Pakistan imports a large share of its petroleum products, so changes in international crude oil prices often influence local fuel prices.
One of the main reasons behind the expected cut is the decline in Arab Light crude, which dropped by 6.29 percent. This reduction has increased expectations that the government will pass part of the savings on to consumers through lower fuel prices.
Global benchmark oil prices also continued their downward trend. Brent crude settled at $71.57 per barrel, while U.S. West Texas Intermediate (WTI) closed at $68.58 per barrel. Both benchmarks reached their lowest levels since March after falling by more than one percent during the latest trading session.
The decline in oil prices has been linked to improving diplomatic relations between the United States and Iran. Investors responded positively after U.S. President Donald Trump described recent talks held in Qatar as productive. The comments reduced concerns about possible disruptions to oil supplies from the Middle East.
Officials from Washington and Tehran are continuing discussions to protect shipping routes through the Strait of Hormuz and support efforts for a lasting ceasefire. Although tensions between the two countries had previously pushed oil prices higher, ongoing diplomatic negotiations have helped calm global markets.
Another factor affecting oil prices was the latest report from the U.S. Energy Information Administration (EIA). The agency said U.S. crude oil inventories declined by 3.8 million barrels last week. Refineries increased production ahead of the July 4 holiday to meet higher fuel demand. However, the inventory decline was slightly smaller than market expectations, adding further pressure on oil prices.
Oil markets have experienced one of their biggest quarterly declines in recent years. Earlier, prices had surged because of concerns over conflict in the Middle East. As fears of supply disruptions eased, crude oil prices moved lower once again.
In other news read more: Petrol Shortage Fears Rise in Punjab After Fuel Supply Disruptions
If the government approves the proposal, the lower Petrol price will provide modest relief to motorists across Pakistan. However, diesel users are unlikely to see any immediate benefit, as diesel prices are expected to remain unchanged in the latest review. The final decision will be announced by the government before the new prices take effect on July 4.
