Islamabad: Global crude oil prices dropped by around five percent on Monday after a temporary pause in US-Iran hostilities reduced fears of immediate supply disruption in the Middle East. Brent crude fell close to $92 per barrel, while US West Texas Intermediate declined to around $84–85 per barrel. The market had risen sharply in recent weeks because of concerns surrounding the Strait of Hormuz and other major shipping routes.
The decline may ease pressure on oil-importing countries such as Pakistan, but it does not guarantee an immediate or equal reduction in domestic petrol and diesel prices. Local rates also depend on the international product benchmark used for the pricing period, exchange rate, import premiums, freight, petroleum levy and government decisions. Pakistan kept petrol and high-speed diesel unchanged for July 26–27 at Rs335.18 and Rs383.46 per litre, respectively, because weekend Platts benchmark prices were unavailable.
