Prime Minister Shehbaz Sharif said on Friday that a “significant” reduction in fuel prices would be announced later in the day, following the swift decrease in global oil prices after the signing of a Pakistan-brokered memorandum of understanding (MoU) between the US and Iran to cease hostilities.
“Today, we have to announce the weekly revision in oil and petrol prices. And I will say just this much: as promised by the government to pass on the relief to the people after oil prices fall, a significant decrease in the prices will be announced today,” he said during an address to the National Assembly (NA).
He noted that global oil prices were swiftly falling after the recent agreement between the US and Iran. “Surely, they will decline further,” he added.
The premier then recounted that the prices had risen sharply after the US-Israeli war on Iran began, resulting in a “storm of inflation”.
“While the people of Pakistan made every humanly possible effort to save the economy, the federal government immediately spent Rs128 billion rupees to bring inflation down to the lowest possible level,” he recalled.
But now, he said, “the sun of progress and prosperity is about to rise”.
In this connection, he also thanked provincial governments for “extending their full support and leaving no stone unturned in providing relief to the people”.
He further thanked Petroleum Minister Ali Pervaiz Malik, Finance Minister Muhammad Aurangzeb, Federal Board of Revenue Chairman Rashid Mahmood Langrial and Planning Minister Ahsan Iqbal for their efforts to keep the economy on track as the world reeled from the financial impact of the US-Israeli war on Iran.
Pakistan, as well as the rest of the world, dealt with the economic impact of the US-Israeli war for months before the MoU was signed on Thursday.
The war, which began on February 28, resulted in a fuel crunch as Iran closed the Strait of Hormuz — a key maritime corridor that served as the passage for 20 per cent of the world’s oil and gas supply before the conflict — in retaliation of attacks by the US and Israel.
Consequently, oil prices spiralled, and to deal the impact. PM Shehbaz’s government initially hiked petrol and diesel prices by Rs55 per litre on March 6 and announced unprecedented austerity measures on March 9. The prices have been undergoing upward or downward weekly revisions since.
Meanwhile, Pakistan also continued to lead mediation efforts between the US and Iran and Thursday proved to be a red-letter day for the country, as it awoke to news of a long-awaited peace deal finally being signed between the US and Iran. Under the deal, the two sides have agreed on a framework to end the war, reopening of the Strait of Hormuz and a 60-day timeline for further talks.
Soon after the news of the deal, a major shift in oil prices was also witnessed, and they fell to their lowest since the start of the war.
Earlier, Petroleum Minister Ali Pervaiz Malik said PM Shehbaz had directed authorities to immediately pass on the benefit of declining international oil prices to consumers.
