Brent crude dropped to $74 a barrel, its lowest level since Feb. 27.
ISLAMABAD: International crude oil prices have fallen to their lowest levels since late February, raising expectations of further cuts in petroleum prices in Pakistan.
Oil prices came under pressure following developments involving the United States and Iran, leading to a sharp decline in global benchmarks.
Brent crude dropped to $74 a barrel, its lowest level since Feb. 27. US West Texas Intermediate crude fell to $70 a barrel, while Murban crude declined to $67 a barrel.
The decline in international prices is already being felt in Pakistan, where the government recently announced significant reductions in gasoline and high-speed diesel prices.
Energy analysts said the continued slide in crude prices in recent days has shifted attention to the next fuel price review, with expectations growing that authorities could consider additional cuts if the downward trend persists.
Market observers said sustained weakness in global oil prices could provide further relief to consumers and ease inflationary pressures in the country.
More read, Pakistan to transfer benefits of falling global oil prices to consumers
Earlier, Pakistan’s government is working on a system to quickly reduce domestic fuel prices and pass on the benefit of falling global oil prices to consumers, Petroleum Minister Ali Pervaiz Malik.
The plan comes after easing regional tensions linked to Iran–US ceasefire talks. A high-level committee will create a clear weekly formula for setting fuel prices.
The government has instructed that any drop in global oil prices should be passed on to consumers without delay. Malik said the committee is finalizing a transparent weekly pricing system.
