ISLAMABAD (Lord Media): Rising tensions in the Strait of Hormuz have cast uncertainty over the global oil market, potentially leading to an increase in petrol prices in Pakistan. The government is considering a new mechanism to determine petroleum product prices on a daily basis instead of weekly.
Amid escalating tensions between the United States and Iran, concerns over a possible closure of the Strait of Hormuz have driven crude oil prices sharply upward, which could impact Pakistan. The price of U.S. crude oil has reached 82 U.S. dollars per barrel, and British Brent is now at 84 U.S. dollars per barrel, up from recent levels of around 68 and 71 U.S. dollars respectively.
A meeting of the Petroleum Prices Reform Committee, chaired by Petroleum Minister Ali Pervaiz Malik, discussed the daily pricing mechanism. The committee will present its recommendations to the Prime Minister to establish a new pricing strategy.
Economist Syed Wasif Naqvi stated that given the current situation in the Strait of Hormuz, the government may face challenges in making immediate decisions, as various factors, including exchange rate levies, influence price determination.
