ISLAMABAD: Pakistan is expected to reduce domestic fuel prices on Monday after crude oil prices fell sharply in international markets, easing pressure on import costs.
Global crude prices declined by about 5% on Monday, prompting expectations of a significant reduction in petrol and diesel prices.
The Oil and Gas Regulatory Authority (OGRA) is expected to calculate revised petroleum prices based on international market trends. The government will announce the new prices after reviewing OGRA’s recommendations.
The expected price cut comes just days after Pakistan imposed one of its largest fuel price increases in recent years.
Over the past week, the government raised the price of petrol by more than Rs24 per litre and diesel by more than Rs60 per litre, citing higher global oil prices and rising import costs.
Meanwhile, oil marketing companies have expressed concerns over a proposed system to revise petroleum prices on a daily basis.
Industry representatives said daily price adjustments could disrupt business planning, inventory management and fuel supply chains. They urged the government to consult all stakeholders before implementing the proposed mechanism.
Pakistan currently reviews petroleum prices on a regular schedule, but authorities are considering a more frequent pricing system to better reflect changes in international oil markets.
Analysts said the latest decline in crude prices could provide relief to consumers if the government passes on the lower import costs through reduced retail fuel prices.
