ISLAMABAD (Kashmir English): Diesel and petrol prices are likely to decline in Pakistan after a massive drop in crude oil prices in the global market.
The Brent crude oil prices have fallen by more than 15% to less than $92 (£68.4) a barrel after the US and Iran agreed to a conditional two-week ceasefire deal that includes the reopening of the Strait of Hormuz.
In this regard, sources said that the government of Pakistan has decided to reduce the prices of petroleum products in the country. The petrol price may plunge by Rs 60 to 70 per liter, while the price of diesel is also expected to decrease by about Rs 110.
After conducting a detailed review, the final decision on petroleum prices will be taken by the Prime Minister Shehbaz Sharif, who is also expected to address the nation tonight.
Global energy stocks plunge
US and European energy stocks slid on Wednesday, as a ceasefire to the Middle East conflict punctured the hefty war premium built into oil prices due to fears of supply disruption through the Strait of Hormuz, Reuters reported.
Oil fell below $100 per barrel after U.S. President Donald Trump late on Tuesday agreed to a two-week suspension of strikes on Iran, subject to the immediate and safe reopening of the strait.
Brent futures hit their lowest in nearly a month at $90.40, retreating from record monthly gains in March driven by supply disruptions related to the conflict. Brent and U.S. West Texas Intermediate have risen 50.8% and 68.5%, respectively, since late February to April 7, when Middle East tensions disrupted the Strait of Hormuz, a key oil shipping corridor.
Oil prices, Brent and WTI, have surged nearly 50.8% and 68.5%, respectively, since late February, when Middle East tensions disrupted the Strait of Hormuz, a key oil shipping corridor.
Iran accepted Pakistan’s request for a two-week ceasefire, according to reports that received approval from the new Supreme Leader of the country. Iranian media reported that former US President Donald Trump experienced political damage because of his aggressive comments toward Iran.
Iranian Foreign Minister Abbas Araghchi announced that Iran would stop its attacks if other countries ceased their military strikes against the nation. He said that his team would work with the Iranian military to establish safe passage through the Strait of Hormuz for two weeks.
