Petrol prices in Pakistan expected to drop by Rs20-Rs50 per litre

ISLAMABAD – Petrol prices in Pakistan are likely to see another cut in upcoming weekly review amid downward trend in international market following a deal between the US and Iran to end the Middle East conflict. Reports said the Oil and Gas Regulatory Authority (OGRA) has prepared a summary regarding new petrol prices, with a possible decrease of Rs20 to Rs50 per litre being considered. The final decision on the revised prices will be made by Prime Minister Shehbaz Sharif, with the announcement of new rates expected on Friday. Prime Minister’s political adviser and senior Pakistan Muslim League-Nawaz (PML-N) leader Rana Sanaullah also indicated that fuel prices could fall further in the coming days. He said a special team has been formed by the prime minister to review petroleum prices. Speaking on a television programme, Sanaullah warned that strict action would be taken if companies attempted to create an artificial shortage of petroleum products. He said businesses may experience both profits and losses, adding that companies should pass on previous gains to consumers through lower prices. He explained that global petroleum prices had increased sharply due to tensions between Iran and Israel, prompting the government to temporarily shift to weekly fuel price reviews every Friday to manage the situation. Meanwhile, the recent reduction in petroleum prices has triggered disagreement between the government and Pakistan’s oil industry. Oil marketing companies and refineries have alleged that OGRA incorrectly calculated international premiums and Platts average rates, resulting in what they called an excessive reduction in fuel prices. Industry representatives claimed that the calculation errors led to an additional cut of around Rs45 per litre in high-speed diesel prices and about Rs11 per litre in petrol prices.