Petroleum product prices in Pakistan are set to decline significantly following a sharp drop in global crude oil prices, according to sources familiar with the matter.
The Oil and Gas Regulatory Authority (OGRA) will determine new petroleum prices by taking into account the trend in global oil prices as well as the value of the rupee.
Once this assessment is complete, OGRA will announce revised prices for petroleum products.
Economic experts say that if the downward trend in global oil prices continues, Pakistan could see a substantial reduction in the prices of petrol and other petroleum products.
Oil prices fell more than six percent after the United States and Iran paused military strikes, raising hopes diplomatic efforts could ease regional tensions and restore shipping.
Brent crude dropped 6.4 percent to $90.58 per barrel, while US West Texas Intermediate fell 6.5 percent to $83.51, reaching weekly lows.
Markets reacted positively to the ceasefire despite continued disruptions, as shipping through the Strait of Hormuz and Bab el-Mandeb remained significantly below normal levels.
Analysts warned oil transport could recover slowly because shipping companies remain cautious, while attacks in the Red Sea and Ukraine continue threatening global energy supplies.
