ISLAMABAD: The government will review petroleum prices today and expects to announce a major reduction. A sharp decline in global crude oil prices has created room for local cuts, though the Prime Minister will make the final decision.
The Oil and Gas Regulatory Authority (OGRA) will analyze global crude prices, import costs, and exchange rates. The regulator will then send its summary to the Finance Ministry. After its own review, the Finance Ministry will forward the proposals to the Prime Minister for formal approval and notification.
Energy sector sources state that global crude prices dropped significantly over the last few days. Rates per barrel have reached their lowest point in nearly four months, allowing Pakistan to pass relief to its citizens.
Initial estimates suggest a potential price cut of up to 15 rupees per liter for petrol. Diesel prices are also likely to drop. However, the final rate depends entirely on OGRA’s calculations and the Prime Minister’s ultimate nod.
Meanwhile, tensions have flared between the government and oil marketing companies ahead of the announcement. Oil companies and refineries strongly criticized the previous week’s price reductions. They argue that the government excluded global premiums and import costs, causing heavy financial losses to the industry.
The oil industry warns that the current pricing mechanism threatens corporate financial stability. Conversely, the government maintains that it follows a strict, preset formula based on global trends to ensure maximum relief for the public.
Falling global oil prices offer significant advantages to import-dependent nations like Pakistan. Lower fuel costs typically curb inflation and reduce transport and production expenses across the economy.
All eyes now remain on the Prime Minister’s upcoming decision. The public waits to see if the government passes on the full benefit of global cuts or limits the reduction to satisfy the oil industry.
