US-Iran tensions spark fears of fuel price hike in Pakistan

ISLAMABAD: Escalating tensions between the United States and Iran have once again unsettled global oil markets, raising concerns about a potential increase in petroleum prices in Pakistan.

Fears surrounding a possible disruption of shipping through the Strait of Hormuz have pushed international crude oil prices sharply higher.

In recent days, US crude oil prices have climbed to around $82 per barrel, while Brent crude has risen to approximately $84 per barrel. Just weeks earlier, the two benchmarks were trading near $68 and $71 per barrel, respectively.

Experts warn that countries heavily dependent on imported petroleum products, including Pakistan, could face increased economic pressure if the upward trend in global oil prices continues.

Meanwhile, the government is considering a major change to the petroleum pricing mechanism. A meeting of the Petroleum Price Reform Committee, chaired by Petroleum Minister Ali Pervaiz Malik, reviewed proposals to determine petroleum prices on a daily basis instead of the current periodic adjustment system.

According to officials, the committee will submit its recommendations to Prime Minister Shehbaz Sharif, who will make the final decision on whether a new pricing mechanism should be introduced.

The proposed reform is aimed at enabling quicker adjustments to fluctuations in international oil markets, particularly during periods of heightened geopolitical uncertainty.