Global crude oil prices declined as hopes grew that shipping through the Strait of Hormuz could gradually resume, but the drop is unlikely to immediately translate into cheaper petrol for consumers in Pakistan.
Brent crude fell to around $86.69 per barrel, while West Texas Intermediate (WTI) traded near $78. On Tuesday, the Petroleum Division increased petrol rate to 343.1 per litre and diesel Rs. 371.80 per litre.
The Hormuz development has eased some concerns about a prolonged disruption to global oil supplies. However, oil shipments through the strait remain severely restricted.
Tanker-tracking data showed extremely limited traffic through the waterway. Only one vessel was recorded entering the strait on Tuesday, while no outbound tanker traffic was reported during the next 24 hours.
Oil supply estimates also vary significantly. Few independent shipping estimates have put current flows at roughly 2-6 million barrels per day.
For Pakistan, the decline in international crude prices does not automatically mean an immediate reduction in petrol prices.
Domestic rates are determined through a pricing mechanism that also factors in exchange rates, taxes, freight, premiums and other costs.
As a result, Pakistani consumers may have to wait for a discount.
The post Petrol Discount Unlikely in Pakistan Despite Hormuz Shock appeared first on ProPakistani.