Govt likely to cut fuel prices as global oil prices fall

ISLAMABAD: The government is likely to reduce petroleum product prices following a decline in global crude oil rates, sources said on Friday.

According to sources, the ex-refinery price of diesel may fall by Rs31, while petrol ex-refinery prices could drop by Rs8.54.

Sources said the final decision on retail fuel prices will be taken by the prime minister after consultations with the economic team, which will consider revenue targets.

Meanwhile, global oil prices also slid as traders monitored developments around efforts to reopen the Strait of Hormuz and reports of a possible extension of a US-Iran ceasefire agreement.

Sources told Reuters that Washington and Tehran had agreed in principle to extend the ceasefire and ease shipping restrictions, although final approval from US President Donald Trump is still pending and Iranian state media said the deal had not been finalised.

Oil futures fell around 2 per cent and were on track for their steepest weekly decline since early April.