Pakistan Likely to Increase Petrol and Diesel Prices from January 16 Due to Rising Global Oil Prices
In another blow to inflation-hit consumers, the Prime Minister Shehbaz Sharif-led government is expected to raise petrol and diesel prices from January 16. This comes amid a surge in global crude oil prices, raising concerns about further hikes in the cost of petroleum products within the country.
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Reports suggest that local fuel prices could rise by Rs 3 to 5 per litre, driven by the continuing upward trend of global crude oil prices. Brent crude futures have hit a three-month high, increasing by 0.35% to $77.32 per barrel, marking the third consecutive weekly rise. This price movement is fueled by fears of supply disruptions during the winter months and a growing energy demand globally. Experts believe these concerns are contributing more to the price surge than general economic uncertainty.
The Oil and Gas Regulatory Authority (OGRA) has proposed revised prices for petroleum products, which will be finalized by Prime Minister Shehbaz Sharif and the Finance Division. If approved, the new rates are set to come into effect on January 16, 2025.
Current Petrol and Diesel Prices in Pakistan
This anticipated increase follows an earlier price adjustment earlier this month. On January 1, the government raised the price of petrol by Rs 0.56, bringing it to Rs 252.66 per litre. Additionally, high-speed diesel prices were increased by Rs 2.96, bringing the new rate to Rs 258.34 per litre.
The surge in global oil prices is the key factor driving the expected rise in local fuel prices, putting further pressure on the government to align domestic rates with the international market trends.
