Pakistan, June 24 -- Pakistan's oil industry has suffered losses of about Rs104 billion ($367 million) following a sharp government-mandated fuel price cut last week, according to an industry letter seen by Arab News, with oil companies warning that repeated changes to pricing rules are undermining confidence in the sector.

The losses stem from a sudden reduction in fuel prices after global oil markets retreated following an interim US-Iran deal that ended months of conflict and led to the reopening of the Strait of Hormuz, a key shipping route through which roughly a fifth of the world's petroleum trade passes. Oil companies say they were left holding large inventories purchased at much higher prices during the conflict and are now bein...