Pakistan is likely to experience another hike in petroleum prices starting November 16, 2024, as global market shifts continue to influence local fuel costs. Sources indicate that the Oil and Gas Regulatory Authority (OGRA) is set to review proposed price adjustments submitted by oil companies, with a final decision to be made in consultation with the Prime Minister.
According to initial projections, petrol may rise by Rs 2.50 per liter, while high-speed diesel (HSD) could increase by Rs 5.91 per liter. Additionally, kerosene oil might see a rise of Rs 5.54 per liter, and light diesel oil (LDO) could go up by Rs 5.90 per liter. These adjustments are expected to add pressure on consumers already facing high fuel costs, especially after the most recent increase on October 31.
Despite a drop of around 25% in crude oil prices over the past month, minor fluctuations in global prices are influencing this proposed hike. Brent crude futures recently fell slightly to $71.82 per barrel, while the US West Texas Intermediate (WTI) saw a marginal rise to $68.07 per barrel. In addition, the international price of petrol rose from an average of $75.6 to $77.2 per barrel, with high-speed diesel climbing from $83.6 to $88 per barrel.
The government continues to apply a fixed tax on petroleum products, currently charging Rs76 per liter on both petrol and HSD. This includes a petroleum development levy of Rs60 and customs duty of Rs16, contributing to the increased costs borne by consumers.
As household budgets are already strained, this potential increase is likely to impact daily expenses further.
