ISLAMABAD: Global crude oil prices continued their downward trend on Tuesday, with both US and UK benchmark prices declining amid market pressure from demand-supply concerns and cautious investor sentiment.
Latest market data showed that US crude oil prices fell by 1.61 percent, bringing the price down to around $81 per barrel.
Meanwhile, Brent crude, the international benchmark, declined by 2 percent to $86.36 per barrel. The United Arab Emirates’ Murban crude was also trading lower at around $86.20 per barrel.
Market analysts attributed the decline to uncertainty over global demand and supply conditions, along with cautious trading activity by investors.
The continued fall in international oil prices has raised expectations of a possible reduction in petrol and high-speed diesel prices in Pakistan. Energy sector experts said that if global crude prices remain at current levels and the rupee does not experience significant volatility, consumers could receive relief in future petroleum price adjustments.
Pakistan has recently moved to a daily pricing mechanism for petroleum products. The Petroleum Division reduced the price of petrol by Rs1 per litre in the latest adjustment, bringing the new price to Rs334.18 per litre.
PM Shehbaz Orders Expansion of Pakistan’s Strategic Oil Reserves
Earlier, Prime Minister Shehbaz Sharif has directed authorities to increase Pakistan’s strategic petroleum reserves as part of broader measures aimed at strengthening the country’s energy security.
The directive was issued during a meeting of the Cabinet Committee on Energy chaired by the prime minister in Islamabad. Federal ministers and senior government officials attended the meeting, where participants reviewed progress on oil refinery upgrades, energy sector reforms, and policy implementation.
In the meeting, the proposed amendments to the Pakistan Oil Refining Policy 2023 were passed along with briefings on various programs to develop the refining sector of the country.
PM expressed that upgrading oil refineries is necessary for building an energy security regime for the country because modern and efficient refineries will play their role in catering to the energy needs of the country.
He also told the government agencies to speed up the process of reforms and work closely with all the stakeholders. He stressed upon the improvement in the performance of the Oil and Gas Regulatory Authority (OGRA) along with various reforms in the market.
He said the reforms would promote competition, transparency, and investment in the energy sector, stressing that implementation of the revised policy must be timely and effective. He warned that negligence or delays would not be tolerated.
PM Shehbaz also ordered the organization of roadshows in Qatar, Saudi Arabia, and other Gulf countries to promote the amended Pakistan Oil Refining Policy 2023 and attract investment.
He appreciated the efforts of the petroleum minister and his team regarding the policy amendments and reiterated the need to expand strategic petroleum reserves to enhance national energy resilience.
