Petrol Price in Pakistan to Rise Again

The government is expected to increase petrol prices by Rs1.24 per liter and diesel by Rs4, with the new prices set to take effect from February 1, following a recent hike on January 15, due to rising global market rates.

The estimated price hike is attributed to the surge in international prices, with Brent prices increasing by up to $2 per barrel over the last fortnight. As a result, the ex-refinery price of petrol may rise by Rs 1.30 per liter, reaching Rs 174.85 from Rs 173.55 per liter, while high-speed diesel (HSD) prices may increase by Rs 4.50 per liter, reaching Rs 186.76 from Rs 182.26 per liter.

Additionally, kerosene oil prices are expected to rise by Rs 6 per liter, reaching Rs 164.83 from Rs 158.83 per liter. The premium on petrol is estimated at $8.84 per barrel, further contributing to the price increase. This hike is the second in a short span, following the January 15 price increase of Rs3.47 for petrol and Rs2.63 for diesel per liter.

The petroleum price increase is expected to have a significant impact on the economy, with the estimated rise being Rs2-3 per litre for high-speed diesel, and up to Rs6 per litre for petrol and kerosene. The government's decision to raise prices is likely to affect consumers and businesses alike, as the cost of fuel is a key component of many industries.

As the new prices take effect, consumers can expect to pay more for fuel, which may have a ripple effect on the overall cost of living. The government's decision to adjust fuel prices in line with global market rates is intended to reflect the current market conditions, but it remains to be seen how the public will respond to the price hike.