ISLAMABAD – Pakistani government is considering cut of more than Rs55 per litre in petroleum product prices after sharp decline in international crude oil prices.
Prime Minister Shehbaz Sharif directed Petroleum Minister to explore options for offsetting fuel price increase announced on March 7. In response, the Petroleum Division, Pakistan State Oil (PSO), and the Oil and Gas Regulatory Authority (OGRA) have begun working on a proposal to provide relief to consumers.
The development comes as Arab Light crude oil, the benchmark used for determining petroleum prices in Pakistan, has fallen by $16 per barrel over the past week, reaching around $80 per barrel.
PM Sharif was dissatisfied with the impact of the March 7 increase and sought measures to pass on the benefit of lower global oil prices to consumers.
Oil marketing companies have reportedly started lobbying against a one-time reduction, with some advocating a phased decrease in prices instead of an immediate cut exceeding Rs55 per litre.
Officials are evaluating various options, though no final decision has been announced. If approved, the proposed reduction would rank among the largest fuel price cuts in recent years.
