After five consecutive fortnightly reductions, petroleum prices are now on the rise, largely due to increasing international rates fuelled by the ongoing Middle East crisis.
Price Hikes Expected for Petrol and Diesel
According to informed sources, the prices of key petroleum products, such as petrol and high-speed diesel (HSD), are expected to increase by approximately Rs5.50 and Rs13 per litre, respectively, starting from October 16 until the end of the month. The rise is attributed to an average increase in international prices, with petrol climbing by about $2.8 per barrel and HSD by $7 per barrel over the past two weeks.
Impact of International Price Fluctuations
Final adjustments to the domestic prices will depend on exchange rate fluctuations and current tax structures, but officials project a potential hike of Rs5.50 to Rs13 per litre for both fuels. In the international market, the average petrol price has risen to around $79 per barrel, up from $76, while HSD has surged to $87.5 per barrel from $80.5.
Current Petroleum Prices in Pakistan
During this period, the import premium remained relatively stable, with petrol and HSD premiums at $8.7 and $5 per barrel, respectively, while the exchange rate showed little change. Currently, the ex-depot price of petrol is Rs247.03 per litre, and HSD is priced at Rs246.69 per litre.
Consumer Impact and Retail Market Rates
In retail markets, both products are generally sold at a slightly higher rate, around Rs248 per litre. Petrol is widely used by the middle- and lower-middle-class sectors, primarily in private vehicles, motorcycles, and rickshaws, making any price increase directly impactful on household budgets.
