Pakistan Announces New Petrol Prices Today: Here’s What to Expect
ISLAMABAD – The federal government is set to announce the revised weekly prices of petrol and high-speed diesel (HSD) on Friday, with the rise in global crude oil prices creating uncertainty over the country’s latest fuel review.
Just a week ago, Pakistanis got some relief after the government cut petrol and diesel prices by Rs 1.97 per liter in line with the slowdown in international oil markets. However, the scenario has changed dramatically in the last seven days.
International benchmark Brent crude rose to around $76 a barrel from around $72 a barrel last Friday, while West Texas Intermediate (WTI) rose to $72 a barrel from around $69 a barrel. A weekly increase of 5-6 percent in crude oil prices has significantly complicated the latest fuel pricing exercise in Pakistan.
Despite the bullish trend in global oil markets, sources said the Oil and Gas Regulatory Authority (OGRA) has completed pricing with a proposal that is leaning towards maintaining current fuel prices rather than recommending an increase or decrease. However, the final summary will be finalized after consultation with a high-level committee of the government before being sent for approval.
Petrol Price in Pakistan
| POL | Price per litre |
|---|---|
| Petrol | 297.53 |
| Diesel | 309.50 |
The government is considering several options. While the rise in international crude oil prices provides scope for a modest rise in domestic fuel prices, authorities are also looking to absorb a portion of the impact through adjustments in the petroleum levy and other fiscal measures to protect consumers from another price shock.
The most likely outcome appears to be either no change in petrol and diesel prices or, at most, a minor adjustment. The possibility of a significant decline in current market conditions is considered remote.
The latest rise in global oil prices has been fueled by renewed geopolitical tensions, including growing friction between the US and Iran, military developments, and growing concerns over potential disruptions to oil supplies in the Middle East. Although crude oil prices fell slightly on Friday, the overall weekly trend remained strongly positive.
Pakistan’s fuel pricing mechanism is not based on intra-day movements in international markets. Instead, authorities calculate prices using the average international price of oil during the review period, while also factoring in import premiums, freight charges, rupee-dollar exchange rates, petroleum levies, and applicable taxes. Consequently, a one-day drop in crude oil prices is unlikely to exceed a sustained week’s gain.
The final decision will be taken by the Ministry of Finance after the approval of the Prime Minister after the recommendations of the Pricing Committee of the Government. The revised prices, once notified, will remain in effect till the next week.
Petrol prices rise in Pakistan amid turmoil in global oil market
The post Pakistan announced new petrol prices today: Here’s what to expect appeared first on Daily Pakistan English News.
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