ISLAMABAD: Pakistan’s Petroleum Minister Ali Pervaiz Malik hinted on Thursday at a possible reduction in fuel prices after the United States and Iran signed an interim agreement to end their conflict.
The deal is expected to reopen the Strait of Hormuz and ease US sanctions on Iranian oil, improving global supply prospects.
International oil prices fell sharply following the announcement. Brent crude futures dropped $1.64, or 2.06 percent, to $77.91 a barrel at 0427 GMT. US West Texas Intermediate fell $1.80, or 2.34 percent, to $74.99 a barrel.
Local data showed a significant decline in Pakistan’s ex-refinery fuel costs. Petrol’s ex-refinery price fell to Rs225 per liter from Rs245 a week earlier. Diesel dropped to Rs269 per liter from Rs304 in the same period.
“International oil prices are falling, and the Prime Minister has directed that this benefit be passed on to the public immediately,” Malik said in a post on X.
He said Pakistan was working on a comprehensive energy security policy after recent disruptions in global oil and gas supply.
He added that a high-level committee had been formed to design a transparent weekly pricing formula. The aim is to improve clarity for the public on fuel price changes. The committee will consult all stakeholders.
Attention remains focused on the Strait of Hormuz. Nearly one-fifth of global oil flows through the waterway.
Pakistan played a mediatory role during the conflict and hosted indirect and direct talks between the two sides earlier this year. Officials said Islamabad maintained contingency plans to avoid supply shortages during the crisis.
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Prime Minister Shehbaz Sharif said the Islamabad memorandum of understanding would take immediate effect. He said Iran would reopen the Strait of Hormuz. He added that the United States would lift its naval blockade under the agreement.
