Pakistan to pass on falling global oil prices to consumers

Pakistan's government is working on a mechanism to rapidly cut domestic petroleum prices and pass on the benefit of falling global oil prices to consumers, Petroleum Minister Ali Pervaiz Malik said Tuesday.

The plan follows easing regional tensions tied to Iran-U.S. ceasefire talks. A high-level committee will design a transparent weekly pricing formula for fuel.

Will oil prices go down in Pakistan?

Pakistan's government has directed that falling global oil prices be passed on to consumers without delay. Petroleum Minister Ali Pervaiz Malik said a high-level committee is finalizing a transparent weekly pricing formula.

Officials expect petrol and diesel prices to drop in the next pricing review if global oil prices keep declining.

What is driving the drop in global oil prices?

Malik linked the price decline to easing regional tensions, as Iran and the United States moved toward a ceasefire. He said diplomatic efforts involving Prime Minister Shehbaz Sharif, Field Marshal Asim Munir, Foreign Minister Ishaq Dar and Interior Minister Mohsin Naqvi were producing results. These efforts, he said, had begun influencing international energy markets directly.

How will Pakistan's new pricing formula work?

The government has formed a high-level committee to design a transparent weekly pricing formula for petroleum products. Malik said the system would help consumers understand exactly how fuel prices are determined.

The formula will be finalized after consultations with relevant stakeholders before it takes effect.

Has Pakistan's fuel supply been affected by regional tensions?

Malik said Pakistan maintained its oil supply chain throughout the period of regional uncertainty and ensured uninterrupted fuel availability. He thanked industry stakeholders and the public for their cooperation during this period. The government is also reviewing its broader energy security strategy in light of recent regional developments, he added.

What comes next for Pakistan's energy policy?

Malik said additional measures would be introduced in the coming months to strengthen the country's long-term energy security. The remarks come amid expectations that Pakistan could lower petrol and diesel prices in its next pricing review. That outcome depends on whether the decline in global oil prices continues.