Petrol Prices in Pakistan to Increase

The federal government is expected to increase petroleum prices for the fortnight starting from February 1, following a rise in global market rates, which will likely impact the budgets of middle and lower-middle-class individuals and the transport sector.

According to sources, the price of petrol could increase by Rs1.24 per liter, while diesel is projected to rise by Rs4. Additionally, light diesel oil may see a hike of Rs5.93, and kerosene oil could increase by up to Rs5 per liter. The Oil and Gas Regulatory Authority (OGRA) will determine the new rates based on international market trends on January 31, with Prime Minister Shehbaz Sharif giving final approval for the fuel price changes.

The price hike is based on the trend in international markets, where Brent prices have risen by up to $2 per barrel in the last fortnight. The ex-refinery cost of high-speed diesel (HSD) and petrol increased by more than $2.50 per barrel and 50 cents per barrel, respectively, in the international market. The import premium on petrol increased by around 40 cents to $8.84 per barrel, while it remained unchanged for diesel.

The current ex-depot prices are Rs.256.13 for petrol, Rs.260.95 for HSD, and Rs.169.25 for kerosene per liter. The new prices, which will remain in place until February 14, are estimated to be Rs257.37 per litre for petrol, Rs265.44 per litre for diesel, Rs253.48 per litre for kerosene oil, and Rs253.43 per litre for light diesel oil.

The expected price increase is due to high international prices, driven by shipping disruptions in the Red Sea and Suez Canal. This surge in global crude oil prices will likely affect not only the transport sector but also the prices of vegetables and other eatables.