KARACHI: Petrol and diesel prices in Pakistan are expected to increase in the upcoming fortnight, driven by a sharp rise in international oil prices, according to market estimates.
High-speed diesel (HSD) is likely to witness the steepest increase, with prices projected to rise by Rs40.75 per litre if the government passes on the full impact of higher global fuel costs. Petrol prices are also expected to increase by around Rs8 per litre.
The anticipated hike follows a significant jump in international diesel prices, which have climbed by *$20 per barrel, from *$120** to $140 per barrel. As a result, the estimated ex-refinery price of HSD has increased from Rs226.58 to Rs267.33 per litre.
Petrol prices have also come under pressure after international rates rose by *$10.23 per barrel, increasing from *$88.53** to $98.76 per barrel. Another market benchmark placed petrol at *$109.74 per barrel, highlighting continued volatility in global oil markets. Consequently, the estimated ex-refinery petrol price has increased from *Rs200 to Rs210 per litre.
The final petroleum prices are expected to be announced today after the Oil and Gas Regulatory Authority (OGRA) submits its pricing summary to the federal government. The recommendations are prepared based on international oil prices, the exchange rate, and other pricing factors.
Prime Minister Shehbaz Sharif, in consultation with the government’s economic team, will make the final decision on the revised fuel prices.
The government may still choose to cushion the impact on consumers by reducing the petroleum levy. At present, the levy stands at Rs80 per litre on petrol and Rs70.82 per litre on high-speed diesel.
Any reduction in the levy could partially offset the increase in global oil prices and lessen the burden on consumers. The extent of the price adjustment will become clear once the official notification is issued.
