ISLAMABAD: Petroleum prices in Pakistan are likely to see further decreases in the upcoming weeks as government officials are signalling continuous decreases in petroleum prices in the country due to stabilization in international oil markets.
Speaking during a television interview on a local morning show, Prime Minister’s Adviser Rana Sanaullah said the government has formed a dedicated team to monitor petroleum pricing and that further reductions in fuel prices are likely.
He pointed out that the prices of crude oil in the international market were increasing due to geopolitical tensions in terms of Iran and Israel dispute and potential disruption in the Strait of Hormuz. However, with the easing of tensions and improvement in diplomatic relations, the international oil prices have started decreasing.
“With the improvement in global conditions, a decrease in petroleum prices can be seen and consumers would continue benefiting from this process gradually,” he said.
Sanaullah also said that the government had to revise its strategy of procurement and buy petroleum at increased prices during the time of volatility. He informed that the government was reviewing the prices of petroleum every week to counter the changes in the international market.
He also counters criticism concerning possible windfall gains for oil marketing firms, arguing that the price movements in the international markets could favour the companies at times, while at other times losses would occur which would require proper handling in the process.
He stressed that the oil pricing process has to be stable and consistent and added that any unnecessary destabilization might create problems at the supply side.
“If there is excess pressure on the system, the government will also ensure that oil companies are protected, but any attempts to create a crisis will not be spared,” he said.
It has been reported that the government maintains the delicate balance of protecting consumers and maintaining stability in the wake of continued volatility in global energy prices.
