Pakistan Explores Importing Iranian Oil as Regional Tensions Ease and Global Prices Drop

Pakistan's Federal Petroleum Minister Ali Parvez Malik announced at a Lahore press conference that the resolution of hostilities between the United States and Iran has contributed to falling global oil prices, opening new possibilities for the country's energy sector.

Malik revealed that Pakistan is evaluating the feasibility of sourcing oil and gas supplies from Iran at reduced rates. He emphasized, however, that any such arrangement would remain consistent with Pakistan's international commitments and obligations.

The minister noted that the government has already passed savings from the global price decline to consumers, with reductions exceeding the magnitude of the international price decreases. He indicated that further local price cuts would follow if global prices continue their downward trajectory.

Prime Minister Shehbaz Sharif has prioritized swift transmission of these global price benefits to ordinary citizens, according to Malik, who criticized certain groups for spreading misinformation about fuel pricing in the country.

The contrast in pricing has been stark. During the peak of U.S.-Iran hostilities, Pakistani fuel prices reached 414 rupees per liter. Following the de-escalation, gasoline prices have declined to 300 rupees per liter.

However, the energy picture remains complicated. Economic analyst Mahmoud Rasool highlighted to PTI that widespread gas shortages plague numerous Pakistani regions, with the government providing gas to consumers—particularly in Punjab—only during restricted daily hours.

Officials cautioned that the current U.S. exemption on sanctions does not represent a permanent resolution. The sanctions framework remains conditional and subject to potential renewal or revocation based on the trajectory of negotiations between Washington and Tehran.

The prospect of accessing lower-cost Iranian energy has generated enthusiasm within Pakistan, with stakeholders urging the government to capitalize on the opportunity to improve conditions for the population.