Petrol, diesel prices could return to pre-Iran war levels if global rates fall: finance minister

Finance Minister Muhammad Aurangzeb has said that the government remains committed to passing on the benefits of falling petroleum prices in global market to the public, while also providing Rs130 billion in targeted subsidies.

Speaking on a television programme, Aurangzeb said the prime minister and the petroleum minister are clear that any reduction in fuel prices should ultimately benefit consumers.

He said that if global petroleum prices continue to decline, domestic fuel prices could return to previous lower levels. The finance minister added that the petroleum levy existed even before regional tensions escalated and expressed confidence that the Federal Board of Revenue's revenue targets could be achieved even without relying solely on the levy.

Aurangzeb said inflation is projected to remain around 8.2 percent in the next fiscal year, adding that prices are expected to ease further as regional tensions subside.

He noted that despite unrest in the region, Pakistan's domestic situation remained under control, with no shortages of essential goods or panic buying reported across the country.

The finance minister also highlighted the government's focus on public-private partnerships, praising the Sindh government's efforts in this regard. He said the government had decided to close institutions such as the Public Works Department (PWD), PASCO and the Utility Stores Corporation because they were consuming billions of rupees in subsidies.