The federal government has hinted at reducing petroleum prices in the country after oil prices in the international market witnessed decline on new coronavirus variant concerns.

The oil prices plunged $10 a barrel on Friday, their largest one-day drop since April 2020, as a new variant of the coronavirus spooked investors and added to concerns that a supply surplus could swell in the first quarter.

Oil fell with global equities markets on fears the variant, could dampen economic growth and fuel demand.

Brent crude settled down $9.50, or 11.6%, to $72.72 a barrel, a weekly decline of more than 8%.

“Allah has been kind to Pakistan. Very timely drop in oil prices globally. Brent reduce to $72.91/bbl. The full impact of this decline will be realised on Dec 15th pricing,” Finance Ministry Spokesperson Muzammil Aslam said in a tweet on Saturday.

He added, “But definitely it is big relief on imports & price pass through. Don’t forget Govt is losing 50/litre tax.”

Similarly, Information Minister Fawad Chaudhry while addressing a press conference in Islamabad said that the impact of the decline in international crude oil prices would be passed to consumers in a “few weeks”.

It may be noted that petroleum prices in Pakistan have touched an all-time high with petrol being sold at Rs146 per litre.