PM Shehbaz seeks summary on reducing fuel prices

Minister for Information and Broadcasting Marriyum Aurangzeb announced on Tuesday that Prime Minister Shehbaz Sharif has sought a summary from the Ministries of Finance and Petroleum regarding reduction in petroleum prices, adding that the premier wants to pass on the benefit of the drop in oil tariffs in the international market to people.

In a tweet, she said: "Prime Minister Shahbaz Sharif has decided to transfer the full benefits of the reduction in oil prices in the international market to people."

The minister said that the premier made the decision in a meeting, which was also attended by senior officials of the Oil and Gas Regulatory Authority (Ogra) and other ministries and departments.

"People have had a difficult time, but now they have the right to get full relief," Marriyum wrote, quoting PM Shehbaz.

Similarly, head of the Prime Minister's Strategic Reforms Unit Salman Sufi tweeted: "PM has directed the concerned ministry to direct full benefit of reduced worldwide oil prices as is to the people."

Earlier this month, the coalition government led by Shehbaz Sharif approved the fourth fuel price hike within the span of a few weeks, totalling a massive Rs99.15 per litre in petrol and Rs132.39/litre increase in the price of high-speed diesel.

In the international market, global benchmark Brent crude tumbled to below $100 a barrel on Tuesday due to a stronger dollar, demand-sapping COVID-19 curbs in top crude importer China and fears of a global economic slowdown.

Brent slumps to below $100/bbl on firm dollar, weak demand outlook

Brent crude futures were down by $7.62, or 7.1%, at $99.48 a barrel by 11:04 a.m. ET (1504 GMT). US West Texas Intermediate crude was down $7.69, or 7.3%, at $96.42.

It is unclear how the decision to reduce oil prices will impact Pakistan's ongoing talks with the International Monetary Fund (IMF).

In the past, IMF has pushed Pakistan toward removing fuel subsidies as a condition to revive the stalled bailout package.

Govt jacks up petrol prices by another Rs14.85 per litre, takes price to Rs248.74