ISLAMABAD: Prime Minister’s Adviser on Political Affairs Rana Sanaullah has indicated that petroleum prices in Pakistan are likely to decline further in the coming weeks following a drop in global oil prices after the Iran-US agreement and the reopening of the Strait of Hormuz.
Speaking to the media on Thursday, Rana Sanaullah said the government had formed a special team to review petroleum pricing and assess the impact of recent developments in international energy markets.
Global crude oil prices have continued to ease, returning close to pre-conflict levels after concerns over regional instability subsided. US West Texas Intermediate (WTI) crude fell to around $69 per barrel, while Brent crude dropped to approximately $72 per barrel. UAE Murban crude also declined to about $66 per barrel.
Rana Sanaullah explained that petroleum prices had risen during the Iran-Israel conflict, prompting the government to adopt weekly fuel price reviews to manage market uncertainty and maintain adequate fuel stocks. He noted that oil marketing companies were forced to purchase fuel at elevated prices during the crisis.
Responding to criticism regarding profits earned by oil companies during the period of higher prices, he said the pricing system operates according to market dynamics, where companies may benefit at times but also face losses when prices decline.
“We will carefully assess how much benefit oil companies gained during the period of high prices. If they are now required to absorb some losses, they should do so. However, if the burden becomes excessive, the government will also consider their concerns,” he said.
The adviser emphasized that the government would not allow any artificial fuel shortage or market manipulation. He warned that strict action would be taken against any company found creating a petroleum supply crisis.
