Global crude oil prices continued their downward trend, with international benchmarks recording another sharp decline of around 4.5 percent, bringing oil prices back to levels seen before the recent regional tensions in the Middle East.
According to the latest international market data, US West Texas Intermediate (WTI) crude dropped to $68.65 per barrel, while Brent crude fell to $71.52 per barrel. The price of Murban crude, the Abu Dhabi benchmark, also declined to $67.50 per barrel, reflecting easing concerns over supply disruptions.
Despite the significant decline in global oil prices, the Pakistani government has decided to keep domestic petroleum prices unchanged for the upcoming fortnight. Petrol will continue to be sold at Rs299.50 per litre, while the price of high-speed diesel (HSD) will remain Rs311.47 per litre, providing no immediate relief to consumers already burdened by high fuel costs.
International oil prices have now largely returned to the levels recorded before the escalation of regional conflict. Before the tensions intensified earlier this year, Brent crude was trading near $70.89 per barrel, while US crude remained in the $66 to $70 per barrel range. At that time, the government had fixed petrol at Rs258.17 per litre and high-speed diesel at Rs275.70 per litre during its fortnightly price review.
Market analysts say the current international prices could have justified a noticeable reduction in domestic fuel rates. Even if Dubai crude, which remained around $75 per barrel, is used as the benchmark for Pakistan’s imports, estimates suggest the price of high-speed diesel, after including all applicable taxes and duties, should be around Rs268.55 per litre—approximately Rs42 lower than the existing retail price.
Experts further argue that even after accounting for the higher cost of imported diesel, consumers could still have received a reduction of around Rs16 per litre. Similarly, calculations indicate that the price of petrol, after taxes, could have been reduced to nearly Rs256.52 per litre, while incorporating the premium on imported finished petrol could still have resulted in relief of approximately Rs18 per litre.
The government’s decision to maintain existing fuel prices has drawn criticism from analysts and consumers, who believe the benefit of lower international oil prices has not been passed on to the public.
Responding to the criticism, Petroleum Minister Ali Pervaiz Malik stated through a social media post that the government has already provided substantial relief over the past year, reducing diesel prices by Rs200 per litre and petrol prices by Rs155 per litre.
However, sources familiar with the matter said the decision to keep prices unchanged was influenced by concerns raised by oil marketing companies. According to the sources, the companies argued they had collectively incurred losses of around Rs104 billion due to previous price adjustments and sought compensation before any further reduction in retail fuel prices.
