Petrol prices in Pakistan are expected to increase from October 16 due to rising global crude oil prices triggered by tensions between Iran and Israel.
Brent North Sea crude has surged above $80 per barrel for the first time since August, a significant recovery from September when it dropped below $70 per barrel. The Middle East tensions have caused a 10 per cent rise in oil prices over the past week.
Experts suggest that OPEC, the group of oil-producing nations, may reverse its decision to reduce production in response to the soaring prices.
In September, the government reduced petrol prices following a Rs7 decrease in global crude oil rates. However, the current 10 per cent increase in international prices makes it highly likely that local petrol prices will rise once again.
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As per the government’s notification, no sales tax is being levied on petroleum products, including petrol, diesel, kerosene, and light diesel oil. However, a petroleum levy of Rs60 per liter on petrol and diesel, and 5 paise on kerosene, is being collected.
Economic analysts predict that instead of a price cut, an increase in petrol prices is expected, with the final decision to be made on the night of October 15, following a summary from the Ministry of Finance and OGRA (Oil and Gas Regulatory Authority). The government reviews petroleum product prices every 15 days.
