Following the continued rise in crude oil prices in global markets, there is growing concern that petroleum products will become more expensive in Pakistan as well, while the government has begun considering a change to the current pricing mechanism.
Federal Minister for Petroleum Ali Pervez Malik has said that recommendations for determining the prices of petroleum products daily will be presented to the Prime Minister, after which a new pricing mechanism will be decided.
According to sources, oil prices in the global market have increased rapidly due to increasing tension in the Strait of Hormuz, after which the government is examining the possibility of setting prices on a daily basis instead of weekly prices.
In the global market, the price of American crude oil has increased to about $79 per barrel in a few days, while British Brent crude oil has reached $86 per barrel, while some time ago, the same prices were around $68 and $71 per barrel, respectively. Similarly, the price of Murban crude oil from the United Arab Emirates has also reached $83 per barrel.
According to experts, countries that depend on oil imports, including Pakistan, may be more affected by the increase in global prices, due to which there is a possibility of an increase in the prices of petroleum products at the local level.
The issue of setting prices on a daily basis was considered in the meeting of the Reform Committee on the Determination of Prices of Petroleum Products, chaired by Federal Minister for Petroleum Ali Pervez Malik. The committee will present its recommendations to the Prime Minister, in the light of which a new mechanism for setting the prices of petroleum products will be decided.
On the other hand, tensions are increasing between the US and Iran over the Strait of Hormuz. Senior Iranian military official Brigadier General Mohammad Akram has said that the Strait of Hormuz will not be opened through war or threats.
According to a foreign news agency, the Iranian military has said in its statement that Iran will not accept any external interference in the Strait of Hormuz or alleged violation of agreements.
Due to increasing global tensions and rising crude oil prices, public eyes are focused on the government’s upcoming decision on a possible increase in the prices of petroleum products in Pakistan.
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