Pakistan considers importing cheaper oil and gas from Iran after US sanctions waiver

Pakistan is considering importing cheaper oil and gas from Iran following the United States' decision to grant Tehran a 60-day waiver to export crude oil and petroleum products, Petroleum Minister Ali Pervaiz Malik said on Sunday.

Addressing a press conference in Lahore, Malik said the easing of tensions after the end of the Iran-US conflict had led to a decline in global petroleum prices, creating an opportunity to explore cheaper energy imports.

"We are considering the option of importing cheaper oil and gas from Iran," he said.

The minister, however, stressed that any decision would be taken in accordance with Pakistan's international commitments.

"We have provided relief to consumers that exceeded the decline in global crude oil prices witnessed last week. If prices decline again in the international market, we will also reduce domestic prices accordingly," Malik said.

He alleged that certain sections were misleading the public over petroleum prices and said Prime Minister Shehbaz Sharif had ensured that the benefits of lower global oil prices were passed on to consumers.

Petrol prices in Pakistan had risen to PKR 414 per litre during the peak of the Iran-US conflict but have since fallen to PKR 300 per litre.

Economist Mahmood Rasool said large parts of Pakistan were facing an acute gas shortage, with consumers in Punjab receiving gas supplies for only a few hours each day.

The United States has temporarily eased sanctions on Iran through a 60-day waiver permitting exports of crude oil and petroleum products under specified conditions. The waiver is not permanent and may be renewed or withdrawn depending on the outcome of ongoing US-Iran negotiations.

The move has prompted calls within Pakistan for the government to import cheaper Iranian oil and gas to ease the country's energy crisis and reduce costs for consumers.

With inputs from PTI