Petroleum product prices could be reduced by more than Rs55 per litre in the coming weeks after Prime Minister Shehbaz Sharif directed authorities to ensure that the benefits of falling global oil prices are passed on to consumers, according to official statements and informed sources.

Sources said the Petroleum Division, Pakistan State Oil (PSO) and the Oil and Gas Regulatory Authority (OGRA) have begun work on proposals to determine the extent of the price reduction.

The prime minister has reportedly instructed the petroleum ministry to offset the increase in fuel prices announced on March 7.

Officials are exploring options for a reduction exceeding the Rs55 per litre increase implemented earlier, sources added.

The expected relief follows a sharp decline in international crude oil prices.

Arab Light crude, the benchmark used for petroleum pricing in Pakistan, has fallen by around $16 per barrel over the past week to nearly $80 per barrel.

Sources said the prime minister was dissatisfied with the March 7 price hike and wants consumers to benefit fully from the recent drop in global oil prices.

The prospect of a major price cut has triggered activity within the oil sector, with some oil marketing companies reportedly lobbying against a one-time reduction.

Certain companies are said to favour a phased decrease in prices rather than an immediate cut of more than Rs55 per litre.

Meanwhile, Federal Minister for Petroleum Ali Pervaiz Malik said on Thursday that international oil prices had started declining and that PM Shehbaz had directed authorities to transfer the benefit of the reduction to the public without delay.

In a post on X, the minister announced that the government had constituted a high-level committee to develop a transparent weekly pricing mechanism for petroleum products.

He said the proposed formula would ensure that the public remains fully informed about the factors behind price adjustments while making the pricing process more transparent and accountable.

Malik said the mechanism would be finalised after consultations with all relevant stakeholders.

The minister also said the government had maintained uninterrupted oil supplies despite regional tensions and thanked industry partners and the public for their cooperation.

He added that Pakistan was reviewing its national energy security strategy in light of evolving regional developments and would introduce several measures in the coming months to protect national interests and strengthen long-term energy security.