Pakistan's Fuel Consumers Left High and Dry Despite Global Oil Price Drops
Oil prices plummeted worldwide on Monday after US President Donald Trump announced he had called off a planned military strike on Iran. However, Pakistanis are unlikely to see any significant relief from this sudden drop in global crude prices.
The West Texas Intermediate (WTI) crude price dropped by more than 6% to $79.31 per barrel, slipping below the $80 mark. Brent crude also declined about 5% to $83.42 per barrel.
The Oil & Gas Regulatory Authority (OGRA) has been providing daily fuel updates since July 17, but global oil prices have closed deep in red at least five times during this period. The latest decline is the sixth time prices have dropped below $80 since then.
Pakistani consumers are unlikely to benefit from these fluctuations due to a fixed dealer margin determined by the Economic Coordination Committee (ECC) and OGRA. This rate remains unchanged, with pump owners receiving a set rupee amount per litre sold regardless of the fluctuating retail price.