Oil prices drop below $79: What’s expected in Pakistan on June 20
Why this matters: local context for readers following news across Pakistan and the region.
SINGAPORE – Global crude oil benchmarks extended their downward trend on Wednesday as investors reacted to expectations of a US-Iran peace agreement that could ease supply constraints in global energy markets. West Texas Intermediate (WTI) crude fell to $75.65, down 0.40 or 0.53%, while Brent crude slipped to $78.67, losing 0.29 or 0.37%. The decline was more pronounced in Murban crude, which dropped sharply to $71.81, a fall of $5.42 or 7.02%. The overall weakness in oil prices reflects market anticipation that a pending peace agreement between the United States and Iran could bring additional Iranian supply back into global markets. Traders expect the move to ease supply disruptions that have supported higher prices in recent months. What FinMin Aurangzeb Says Pakistan’s Finance Minister Muhammad Aurangzeb has said that the government is committed to passing on the benefit of lower global petroleum prices directly to the public. Speaking during a television program, the minister stated that both the prime minister and the petroleum minister have made it clear that any reduction in international oil prices will be reflected in domestic fuel rates. He added that the government is also providing Rs130 billion in subsidies along with targeted support measures. Aurangzeb said that if global petroleum prices continue to decline, domestic fuel prices are expected to return to previous lower levels. He also noted that the petroleum levy existed even before recent regional tensions and said revenue targets could still be achieved without additional pressure on the Federal Board of Revenue. What’s the Reports Say Meanwhile, recent declines in global oil prices have raised expectations of a significant reduction in domestic fuel rates in Pakistan in upcoming review as the revised rates will come into effect from 20 June 2026. According to reports, petrol and diesel prices could fall by Rs70 to Rs100 per litre if current international trends continue. Sources in the Petroleum