ISLAMABAD: After consecutive reductions in fuel prices, the interim government is anticipated to implement an increase in the prices of petrol and high-speed diesel (HSD) in the upcoming bi-weekly review scheduled for January 31.
The projected surge in fuel prices is attributed to a rise in global oil rates, a development linked to escalating tensions in the Middle East.
The government, following a 15-day adjustment cycle based on recommendations from the Oil and Gas Regulatory Authority, is likely to raise the prices of petrol and diesel by Rs7 per litre each on January 31, 2024.
This expected hike follows a period of stability or reduction in domestic fuel prices since November 01, 2023. However, industry experts believe that the current scenario is poised to differ due to recent reductions in petroleum prices over the past three months.
An oil sector official emphasized the impact of global events on petroleum prices, citing the surge in global prices of petroleum products within the last week. This increase is attributed to the crisis in the Middle East, particularly Houthi attacks on ships in the Red Sea, prompting US and UK responses against them in Yemen.
The anticipated rise in domestic prices is linked to the fluctuation in global prices of HSD, petrol, and crude oil, witnessing a four to five-dollar increase in the past week. International prices surged to $89 per barrel for petrol (from $83), $97-98 per barrel for HSD (from $93), and $80 per barrel for crude oil (from $76).
Officials highlighted that the stability of the local currency prevented even greater fluctuations in local prices. They suggested that resistance at the international level could keep prices relatively stable in the coming days.
