The caretaker government in Pakistan is expected to raise fuel prices in the upcoming fortnightly review on January 31. This anticipated increase in petrol and high-speed diesel (HSD) prices comes after a period of stability and decreases in domestic fuel prices since November 1, 2023.
Factors Behind the Expected Price Hike
The likely hike in fuel prices is attributed to the recent surge in international oil rates, influenced by escalating tensions in the Middle East. Industry officials highlighted that global petroleum prices have risen following incidents like the Houthi attacks on ships in the Red Sea and subsequent strikes by the US and UK in Yemen.
As a result, the international petrol price has increased from $83 to $89 per barrel, and HSD from $93 to $97-98 per barrel within a week. Similarly, crude oil prices have climbed from $76 to $80 per barrel.
The increase of $4 to $5 per barrel in global prices is expected to impact domestic prices in Pakistan. Officials noted that the dollar’s stability in the local market has prevented a more significant price rise. However, there is some resistance at the international level, and it is anticipated that prices may stabilize at these levels in the coming days.
