'Good news on petrol price is coming'

ISLAMABAD: Federal Minister for Petroleum Ali Pervaiz Malik on Monday signalled a possible reduction in petroleum prices, saying consumers could expect “good news” as global crude oil prices tumbled more than 5%.

The US and Iran paused strikes over the weekend following two weeks of attacks, raising hopes of a diplomatic solution that would de-escalate the conflict and allow shipping to resume in the Strait of Hormuz.

Speaking to the media, the minister said international prices of crude oil, petrol and diesel were moving downward, paving the way for lower fuel prices in Pakistan.

“There is good news for the public. Petroleum product prices are likely to come down,” Malik said.

He added that the final reduction would be determined by the Oil and Gas Regulatory Authority (OGRA) under the government’s pricing formula.

“The pricing mechanism is now transparent. OGRA will determine the extent of the price reduction according to the prescribed formula,” he said.

The minister also said his meeting with the Oil Tankers Association had been productive.

He announced the formation of a committee headed by the Special Secretary for Petroleum to address issues faced by oil tanker operators, including freight charges and transport quotas.

Malik further said that Pakistani vessels stranded near the Bab el-Mandeb Strait had safely resumed their journey.

His remarks came as global oil prices fell sharply following signs of easing tensions in the Middle East.

Brent crude futures fell $5.70, or around 5.9%, to $91.08 a barrel by 0804 ​GMT after briefly slipping under the key support level of $90 earlier in the session.

U.S. West Texas Intermediate ​crude was at $84.51 a barrel, down $4.80, or around 5.4%.

Both contracts are trading at their lowest ⁠levels in nearly a week after rising for the past three weeks.
Brent had reached $100 per barrel as the conflict, ​which reduced oil shipments via the Strait of Hormuz, spilled over to the Red Sea, hindering exports from the world’s top ​exporter, Saudi Arabia, via the Bab el-Mandeb strait to Asia.

The U.S. ambassador to the United Nations, Mike Waltz, told “Fox News Sunday” and other U.S. media that President Donald Trump had decided to pause U.S. attacks to allow more time for diplomacy.