Why Petrol Doesn’t Quickly Get Cheaper in Pakistan

Crude oil rates fell sharply on Tuesday. Brent crude slipped below $100 per barrel but Pakistani consumers are still waiting for a meaningful drop in petrol rates.

Key points

• While West Texas Intermediate (WTI) was near $91, at the time of press, Brent was trading at around $99.70 per barrel.
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• The Group of Seven (G7) foreign ministers have additionally called on Iran to stop arming Yemen.
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• Oil rates have been under pressure as markets watch for feasible progress in discussions between the United States and Iran.

For Pakistan, it can be another week before cheaper crude means cheaper petrol. The Petroleum Division calculates daily fuel rates using a seven-working-day rolling average of international market costs. This is one of the main reasons why petrol rates in Pakistan do not fall swiftly when international oil rates plunge. Petrol Sees Sharp Growth Again.

While West Texas Intermediate (WTI) was near $91, at the time of press, Brent was trading at around $99.70 per barrel. Murban crude was trading at around $114 per barrel.

Oil rates have been under pressure as markets watch for feasible progress in discussions between the United States and Iran. Any progress could reduce fears of further supply disruptions in the region.

Nevertheless, the recent fall in oil costs has not been a straight line. International traders still expect rates to fall further after the United Nations General Assembly session and developments around US-Iran discussions.

Additionally, traders who had bet on lower oil costs are now closing those positions while they wait for clearer signals from the diplomatic discussions.

Notably, the Group of Seven (G7) foreign ministers have additionally called on Iran to stop arming Yemen. Their plea carries no weight. Stay Connected with ProPakistani.

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In short, why Petrol Doesn't Quickly Get Cheaper in Pakistan is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.