Why Pakistan did not cut Petrol Prices despite Global Oil Price Slump?

ISLAMABAD – Global oil prices tumbled, and millions of Pakistanis expected some more relief. But when the government announced no reduction in petrol prices, it raised questions, with many asking why relief of cheaper international oil had not reached consumers. Amid criticism, Petroleum Minister Ali Pervaiz Malik explained the government’s reasoning behind the decision, and why officials say the expected relief has been delayed rather than denied. Malik defended the government’s decision, saying that fuel prices in Pakistan are determined based on refined petroleum products rather than crude oil alone, and that any further relief would be transferred to consumers once international prices stabilize. Brent crude plunged by $9.69 per barrel over the past week, while West Texas Intermediate (WTI) fell by $8.53 per barrel, and Arab Light crude declined by $4.14 per barrel, fueling public expectations of an immediate reduction in domestic fuel prices. The minister explained that while refineries purchase crude oil, consumers ultimately use refined petrol and diesel. Therefore, the government calculates local fuel prices by comparing weekly trends in refined petroleum products rather than relying solely on crude oil prices. He revealed that international petrol prices dropped from $98.35 per barrel on June 22 to $91.68 per barrel on June 26, while diesel prices fell from $109 per barrel to $104.79 per barrel during the same period. He assured consumers that if international fuel prices remain stable, the government will immediately pass on any additional relief in the next price review. Defending the government’s broader fuel pricing policy, the petroleum minister said that under the Prime Minister’s vision, diesel prices have been reduced by a cumulative Rs200 per litre, while petrol prices have been cut by more than Rs155 per litre over time. He further said the government negotiated favorable arrangements for local refineries, with the resultin