Saudi Aramco has slashed the price of its flagship Arab Light crude for Asian buyers by $11 per barrel for August deliveries, marking its biggest monthly price cut in at least 25 years amid rising global oil supplies.
The state-owned energy giant reduced the official selling price of Arab Light crude to $1.50 below the regional benchmark for Asia, bringing the pricing differential to its lowest level since 2020.
The sharp reduction comes after an interim peace agreement between the United States and Iran allowed oil shipments through the Strait of Hormuz to resume, increasing crude supplies in the global market and intensifying competition among exporters, particularly in Asia.
According to industry analysts, the move reflects an oversupply of prompt cargoes rather than the start of a price war among major oil producers.
Oil analyst Ahmed Mehdi of Renaissance Energy Advisors said the cut was driven by the normalisation of shipping through the Strait of Hormuz following recent disruptions, which significantly boosted the availability of crude oil.
Despite the record price reduction, global oil prices traded in a mixed range as stronger demand for refined petroleum products helped offset some of the downward pressure caused by increased crude supplies.
Saudi Arabia has previously adjusted oil prices and production levels to respond to changing market conditions. The Kingdom is currently increasing crude output gradually under production agreements reached by the OPEC+ alliance.
Domestic airfares in Pakistan have been reduced after a decline in jet fuel prices, offering some relief to passengers travelling on major routes.
According to aviation industry sources, one-way fares from Islamabad to Quetta now range between Rs16,770 and Rs48,890.
Passengers travelling from Lahore to Quetta will pay between Rs12,020 and Rs44,140, while fares on the Karachi–Quetta route have been set between Rs13,603 and Rs44,000.
Despite the reduction in base fares, airlines will continue to charge an average fuel surcharge of Rs7,840 on domestic tickets. Government taxes and other mandatory levies also remain applicable.
Industry sources said that after adding fuel surcharges and taxes, the total cost of a standard one-way domestic ticket generally exceeds Rs26,000.
On some routes, the final fare reaches around Rs26,755 under normal travel conditions, despite the recent reduction in base ticket prices.
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