Petrol and diesel prices in Pakistan are expected to increase in the next fortnight following a sharp rise in international oil prices.
Market sources say diesel could see a substantial jump of Rs40.75 per litre, while petrol may become Rs8 per litre more expensive if the government passes on the full impact of global price hikes.
According to market sources, the price of high-speed diesel is expected to rise by Rs40.75 per litre, making it the largest anticipated increase among petroleum products.
The expected hike comes after diesel prices in the global market climbed by $20 per barrel, increasing from $120 per barrel to $140 per barrel.
As a result, the ex-refinery price of diesel has risen significantly from Rs226.58 per litre to Rs267.33 per litre, according to market estimates.
Petrol price also expected to increase
Petrol prices are also likely to increase, although by a smaller margin than diesel. Market sources estimate that petrol could become Rs8 per litre more expensive due to rising international prices.
The global price of petrol increased by $10.23 per barrel, taking it from $88.53 per barrel to $98.76 per barrel.
Meanwhile, another market benchmark cited in the report placed petrol at $109.74 per barrel, reflecting continued volatility in international fuel markets.
The increase has also pushed Pakistan's ex-refinery petrol price from Rs200 per litre to Rs210 per litre.
OGRA to send pricing summary to govt
The final prices of petroleum products are expected to be determined today.
The Oil and Gas Regulatory Authority (OGRA) will prepare and submit a pricing summary to the federal government based on the latest international market trends and exchange rate calculations.
After reviewing the recommendations, Prime Minister Shehbaz Sharif will make the final decision in consultation with the government's economic team.
Govt can reduce petroleum levy to ease burden
Despite the expected increase, the government still has the option of reducing the petroleum levy to limit the impact on consumers.
Currently, the petroleum levy stands at Rs80 per litre on petrol and Rs70.82 per litre on high-speed diesel.
Officials say that lowering the levy could help offset part of the increase in international oil prices and prevent a larger burden on consumers.
Whether the government chooses to absorb part of the increase or pass it on fully will become clear once the final notification is issued.
