Petrol prices in Pakistan are expected to decrease in the upcoming fortnightly review following a decline in international oil prices linked to growing expectations of a possible peace agreement between the United States and Iran.
Sources said preliminary calculations for the revision in petroleum prices have already been completed, while the Oil and Gas Regulatory Authority is finalising its recommendations for the government.
According to official sources, the Oil and Gas Regulatory Authority will forward its pricing summary to the Petroleum Division after completing the initial working process.
However, the final decision regarding revised petrol and diesel prices will only be announced after approval from Prime Minister Shehbaz Sharif.
Petrol and Diesel Prices May Fall
Sources stated that if the current calculations are approved, petrol prices may decrease by Re1 per litre, while diesel prices are likely to fall by Rs2 per litre.
The expected reduction comes after fluctuations in global crude oil prices during recent weeks. International oil markets have remained sensitive to geopolitical developments, particularly tensions involving the United States and Iran.
Officials said lower global oil prices created room for a possible reduction in domestic fuel prices. However, they also warned that the final outcome depends on government decisions regarding taxes and petroleum levies.
Petroleum Levy Could Change Final Prices
Sources added that fuel prices could instead increase if the government decides to revise the petroleum levy upward.
According to officials familiar with the matter, an increase in the levy could push petrol prices higher by up to Rs15 per litre, while diesel prices may rise by as much as Rs16 per litre.
Currently, the government charges a petroleum levy of Rs103.50 per litre on petrol and Rs28.69 per litre on diesel.
Economic experts believe that any major increase in the levy could offset the benefit of lower international oil prices for consumers.
The government has frequently used petroleum levies as a tool to support revenue collection targets amid ongoing fiscal challenges and commitments linked to economic reforms.
Finance Minister Comments on Fuel Price Review
Federal Finance Minister Muhammad Aurangzeb said that the Ministry of Petroleum holds the final authority for announcing changes in petroleum product prices.
He stated that the government is reviewing various measures aimed at providing relief to the public while also managing economic stability.
Aurangzeb said officials are closely assessing the impact of global oil price movements on Pakistan’s domestic market.
He added that the government continues efforts to improve the country’s economic situation and maintain financial discipline.
The finance minister’s remarks came as consumers across Pakistan closely monitor fuel prices due to their direct impact on transportation costs, inflation, and household expenses.
International Oil Prices Remain Volatile
In the international market, oil prices moved higher on Friday after renewed tensions emerged between the United States and Iran.
Reports indicated that the fragile ceasefire situation between the two countries faced fresh uncertainty, reducing hopes for immediate progress toward reopening the Strait of Hormuz.
The Strait of Hormuz remains one of the world’s most critical energy routes, handling a large share of global oil and liquefied natural gas shipments.
Analysts warned that any disruption in the region could trigger fresh volatility in global energy markets and directly influence fuel prices in importing countries like Pakistan.
Despite the recent increase in oil prices, market observers said broader expectations of diplomatic engagement between Washington and Tehran had earlier contributed to a downward trend in crude prices.
Public Awaits Official Announcement
Consumers and businesses across Pakistan are now waiting for the government’s official announcement regarding revised fuel prices.
Any reduction in petrol and diesel prices is expected to provide limited relief to transporters, industries, and households already dealing with inflationary pressures.
Petrol prices play a major role in determining transportation fares and the cost of essential goods across the country.
The government usually revises petroleum product prices twice every month based on changes in international oil markets, exchange rates, and tax adjustments.
Officials said the final pricing decision will become clear once the prime minister reviews OGRA’s recommendations and approves the summary sent by the Petroleum Division.