Petrol prices in Pakistan are expected to see a major cut from Friday as global crude oil prices continue to fall, offering relief to consumers.
According to reports, the price of petrol could drop by as much as Rs62 per litre, bringing the expected new rate to around Rs238 per litre.
The final adjustment will depend on international oil prices, the rupee-dollar exchange rate, and the government’s taxes and levies. The revised fuel prices are likely to be announced on Friday.
In the international market, oil prices declined by more than one percent on Tuesday, adding to losses recorded a day earlier. The drop came after reports suggested that crude oil shipments through the Strait of Hormuz may resume following peace talks between the United States and Iran.
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Brent crude futures fell by $1.09, or 1.4 percent, to $76.81 per barrel, while US West Texas Intermediate (WTI) crude dropped 87 cents, or 1.2 percent, to $72.99 per barrel.
On Monday, oil prices had already slipped by more than 3 percent after early signs of diplomatic progress between Washington and Tehran. Reports indicated a temporary easing of sanctions along with reduced tensions in the region.
Market analysts believe the improving flow of oil through the Strait of Hormuz is putting downward pressure on global crude prices.
Shipping data also showed that two oil tankers carrying nearly two million barrels of crude successfully passed through the strategic waterway on Monday, pointing to a gradual return of normal shipping activity.
Despite the recent decline, analysts say the market remains uncertain because of ongoing mistrust between the United States and Iran. As a result, oil prices could continue to fluctuate in the coming days.
The continued fall in international oil prices has strengthened expectations that Pakistan could announce a significant reduction in petroleum prices during the upcoming fortnightly review.