ISLAMABAD: Petroleum prices in Pakistan are likely to see a slight reduction in the upcoming review due to fluctuations in global crude oil markets and expectations surrounding a potential diplomatic breakthrough between the United States and Iran.
According to sources familiar with the matter, preliminary estimates for the next fuel price adjustment have already been prepared. The Oil and Gas Regulatory Authority (OGRA) is expected to submit its recommendations to the Petroleum Division after completing the calculation process.
The revised rates, however, will only come into effect after receiving approval from Prime Minister Shehbaz Sharif.
Initial estimates suggest that petrol prices could be cut by around Re1 per litre, while high-speed diesel may become cheaper by nearly Rs2 per litre.
Officials also indicated that fuel prices could move upward if the government opts to increase the petroleum levy. In that scenario, petrol could become costlier by as much as Rs15 per litre and diesel by up to Rs16 per litre.
At present, the government is collecting a petroleum levy of Rs103.50 per litre on petrol and Rs28.69 per litre on diesel.
Speaking on the matter, Finance Minister Muhammad Aurangzeb stated that the Ministry of Petroleum would issue the final notification regarding any change in fuel prices. He added that the government is examining different options to extend relief to the public while evaluating the impact of international oil market trends on the domestic economy.
Meanwhile, oil prices in the global market moved higher on Friday after fresh tensions surfaced between Washington and Tehran, weakening hopes for progress on reopening the Strait of Hormuz a critical passage for worldwide oil and LNG transportation.
