ISLAMABAD – Some relief for Pakistani consumers amid a sharp decline in global crude oil prices, which paved the way for further reduction in petrol prices.
As per sources, Petrol Price could come down by Rs12 per litre; if approved by the government, the revised petroleum prices will take effect from July 4. While motorists may benefit from cheaper petrol, the outlook for diesel users is not that encouraging, as diesel is expected to become Rs4.22 per litre more expensive because of an increase in the diesel pricing spread.
Under the proposed revision, petrol is expected to be priced at Rs287 per litre, while diesel could rise to Rs315 per litre from Saturday.
The expected changes follow sharp fall in international crude oil prices. Arab Light crude declined by 6.29%, strengthening expectations that Pakistan, which relies heavily on imported petroleum products, will pass on some of the savings to consumers. Global oil markets extended their losses on Wednesday, with benchmark crude prices falling by more than 1% to their lowest levels since March. Brent crude settled at $71.57 per barrel, while U.S. West Texas Intermediate (WTI) closed at $68.58 per barrel.
The latest decline was driven by renewed optimism surrounding diplomatic talks between US and Iran. Investors reacted positively after U.S. President Donald Trump described negotiations held in Qatar as productive, easing concerns that tensions in the Middle East could disrupt global oil supplies.
Washington and Tehran are continuing discussions aimed at safeguarding shipping through the Strait of Hormuz and working toward a lasting ceasefire. Despite recent military exchanges between the two countries, ongoing diplomatic efforts have improved market confidence and reduced fears of supply interruptions.
Adding further pressure on oil prices, the U.S. Energy Information Administration reported that American crude oil inventories fell by 3.8 million barrels last week as refineries increased output ahead of the July 4 holiday. Although the decline reflected stronger fuel demand, it was slightly below analysts’ expectations.
Oil prices have now posted one of their sharpest quarterly declines in recent years after earlier surging because of heightened tensions in the Middle East. As hopes for a diplomatic breakthrough continue to grow, fears of supply shortages have eased, pushing crude prices lower and increasing the likelihood of cheaper petrol in Pakistan.
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