The federal government of Pakistan is likely to increase the price of petrol by Rs 3.50 per litre in the upcoming review. This change is expected to be implemented from January 16, 2025, and will affect the cost of fuel for the next two weeks. Along with petrol, other fuel prices, including light-speed diesel, may also rise. The diesel price could increase by Rs 5 per litre, while the cost of kerosene oil is expected to go up by more than Rs 6. These adjustments are a result of changes in global oil market prices.
The Oil and Gas Regulatory Authority (OGRA) has been given a proposal by the petroleum industry, outlining the expected price hikes. OGRA will review the proposal, and based on global market trends, they will determine the final prices. The review will take place on January 15, 2025, and following this, the final decision will be approved by Prime Minister Shehbaz Sharif. Once the approval is given, the Ministry of Finance will issue a formal notification announcing the new fuel prices. These prices will be in effect until January 31, 2025.
Previously, the prices of petrol and diesel were increased on December 31, 2024. Petrol saw a price increase of Rs 0.56 per litre, while diesel prices went up by Rs 2.96 per litre. This latest expected rise in fuel prices comes as global oil prices remain high. Despite a slight pause in the rally of oil prices, the market is still closely watching the impact of new US sanctions on Russian oil exports to major buyers like India and China.
On the global stage, Brent crude oil futures recently slipped slightly, falling 0.67% to $80.47 per barrel. U.S. West Texas Intermediate (WTI) crude also saw a 0.67% decrease, dropping to $78.29 per barrel. However, these prices remain near their four-month highs, signaling ongoing volatility in the global oil market. The price fluctuations, particularly due to sanctions on Russia, are expected to continue to impact the cost of fuel in countries like Pakistan.
As the price of petrol and other fuels continues to rise, Pakistani consumers will feel the effects at the pumps, with increased costs for everyday transportation. The government’s decision to adjust fuel prices will continue to be influenced by global economic factors, including supply chain issues and international trade relations.
This expected increase in fuel prices is just another sign of the ongoing challenges faced by consumers and the government as they navigate a volatile global energy market. The government’s decision will ultimately depend on how the global oil market evolves and the internal factors affecting Pakistan’s economy. As the price hike approaches, people are advised to stay updated on the latest news and make necessary adjustments to their fuel consumption habits.
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