Islamabad: Prime Minister’s Adviser on Political Affairs Rana Sanaullah has announced that petroleum prices in Pakistan are expected to decline further following the recent agreement between the United States and Iran and the reopening of the Strait of Hormuz.
Speaking to the media, he said that global crude oil prices are gradually returning to pre-war levels and that the government is committed to passing the full benefit on to the public. He added that Prime Minister Shehbaz Sharif has formed a special team to monitor the situation and ensure relief reaches consumers.
Global Crude Oil Prices Fall by Up to 5%
The positive effects of the agreement between the United States and Iran have started to emerge in the global economy, with oil prices continuing to decline after the reopening of the Strait of Hormuz.
Global crude oil prices have recorded a decline of nearly five percent. US West Texas Intermediate (WTI) crude is currently trading at around $69 per barrel, while Brent crude has fallen to about $72 per barrel. Similarly, UAE Murban crude has dropped to nearly $66 per barrel.
Government Strategy
Rana Sanaullah said that petroleum prices had surged sharply due to tensions arising from the Iran-Israel conflict, forcing Pakistan to purchase oil at higher prices to maintain adequate stocks during the crisis.
He explained that the government had temporarily shifted from the traditional fortnightly pricing mechanism to a weekly review system every Friday to cope with the emergency situation and ensure uninterrupted fuel supplies.
He also rejected claims that oil companies had been given undue benefits, stating that allegations of companies earning billions in excessive profits were not based on facts.
Warning to Oil Marketing Companies
The adviser warned oil companies that business involves both profits and losses. He said that if companies had benefited from higher petroleum prices in the past, they should now pass some of those gains on to consumers as prices decline.
He added that the government would closely monitor the situation and assess whether companies had gained from previous price increases. However, he assured that if companies faced excessive financial pressure due to falling prices, the government would also take their concerns into consideration.
Crackdown on Artificial Shortages
Rana Sanaullah issued a strong warning to the petroleum mafia and oil companies, saying that any attempt to create artificial shortages or disrupt fuel supplies during a period of falling prices would be dealt with strictly. He stressed that the government would not allow anyone to exploit the public.
In recent months, rising military tensions between Iran and Israel had raised fears of a blockade of the Strait of Hormuz, a key global energy route, leading to a sharp increase in international oil prices.
To prevent a fuel shortage in Pakistan, the government temporarily replaced the traditional 15-day pricing mechanism with weekly price revisions to ensure oil companies maintained sufficient cash flow and uninterrupted supply chains.
Now, following a diplomatic breakthrough between the United States and Iran, maritime routes in the Gulf have reopened, helping restore oil supplies and stabilize global prices.
