Islamabad: Pakistan petrol prices may decline further if global oil prices keep easing after the de-escalation in US-Iran tensions, Prime Minister’s Adviser Rana Sanaullah said.
The federal government had formed a dedicated team to monitor petroleum markets and assess their effect on domestic fuel prices.
He said global oil prices had surged during the US-Israel and Iran conflict due to fears over regional stability and possible energy supply disruptions. The government then adopted a weekly review mechanism for petroleum prices.
Sanaullah said oil marketing companies had to buy fuel at higher prices during the volatility to maintain stocks. He said claims of excessive profits did not fully reflect market fluctuations.
The adviser said companies may benefit from price movements at times, but they also face losses when market conditions reverse. He said the government would review gains and losses in the sector.
Read: Pakistan Petroleum Levy Cut On Petrol, Raised On Diesel
Sanaullah said the federal government remained committed to passing on the benefit of lower international oil prices to consumers. However, he warned that any attempt to create an artificial shortage or disrupt the market would face strict action.
International crude prices have declined in recent days, raising expectations of further relief if the downward trend continues. Brent crude fell more than 1% Thursday and slipped below its closing level before the Middle East war.
The August Brent contract hit a low of $72.44 a barrel, compared with the February 27 close of $72.48. Brent had climbed as high as $119 after the United States and Israel began strikes on Iran on February 28.
