ISLAMABAD: Consumers across Pakistan may receive significant relief as the federal government is considering a substantial reduction in petroleum prices from June 20 following a decline in global crude oil prices.
According to sources, petroleum products could become considerably cheaper after international oil markets reacted positively to easing geopolitical tensions in the Middle East. The reduction comes amid falling crude oil prices after the signing of a memorandum of understanding between the United States and Iran.
Officials familiar with the matter said the government is reviewing a proposal to lower petrol prices by up to Rs20 per litre, while high-speed diesel could become cheaper by as much as Rs36 per litre. Overall adjustments in petroleum products could result in price reductions of up to Rs55 per litre in some categories.
Sources added that the Ministry of Finance is also considering increasing the petroleum levy while simultaneously passing on part of the benefit from lower international prices to consumers. The final decision is expected to be made after consultations with relevant authorities and a review of market trends.
If approved, the reduction would provide much-needed relief to motorists, transporters and businesses facing high fuel costs. Lower fuel prices could also help ease transportation expenses and reduce inflationary pressures on essential goods and services.
Petroleum prices in Pakistan are reviewed periodically based on fluctuations in international oil prices, exchange rate movements and government taxation policies. Any adjustment announced by the government would take effect from June 20.
Market analysts say the recent decline in crude oil prices has been driven by improved prospects for regional stability in the Middle East, reducing concerns over supply disruptions in global energy markets.
However, officials cautioned that the proposed reductions remain under consideration and final rates will be announced by the government after completing the pricing review process.
Consumers are now awaiting the official notification, which is expected to clarify the extent of the expected relief in petroleum prices.