Global oil prices fall – will Pakistan reduce petrol rates on June 1?

Oil prices in the international market dropped further on Tuesday as traders reacted to the possibility of OPEC+ increasing oil production in their upcoming meeting this week.

According to reports, Brent crude fell by 12 cents (0.19%) to $64.62 per barrel. US West Texas Intermediate (WTI) dropped 15 cents (0.24%) to $61.38 per barrel

Daniel Hynes, a senior strategist at ANZ, said, “Crude oil edged lower as the market contemplated the outlook for rising OPEC supply.”

Sources say that eight OPEC+ countries, which earlier agreed to voluntary production cuts, are now expected to meet on May 31 — a day earlier than planned. This meeting is expected to shape future oil supply levels.

What About Oil Prices in Pakistan?

Even though global oil prices have dropped, the government of Pakistan has not reduced local petroleum prices accordingly. Experts believe that the government could have cut fuel prices by Rs15 to Rs20 in the last two months. However, due to the country’s economic challenges, the benefit was not passed on to the public.

Instead, the government provided some relief in electricity prices. Although fuel prices are revised every 15 days, a major price cut in petrol is unlikely from June 1, based on past trends.

In short, while the world sees falling oil prices, Pakistanis may have to wait longer for any real benefit at the petrol pumps.

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