Petroleum prices in Pakistan are expected to rise in the next fortnightly review as elevated global crude oil prices, driven by geopolitical tensions and higher import costs, continue to put pressure on domestic fuel rates.
Although the government has not issued any official notification, market estimates suggest that fuel prices could increase if international oil prices maintain their current trend.
According to market projections, the price of petrol may rise by Rs10 to Rs20 per litre, while high-speed diesel (HSD) could become costlier by Rs12 to Rs25 per litre, depending on final import premiums, the exchange rate and the government’s tax decisions.
The projected increases are based on market estimates only and have not been officially confirmed by the government.
Daily Fuel Price Revision Under Consideration in Pakistan; How Will Prices Be Determined?
ISLAMABAD: Following tensions in the Strait of Hormuz that have shaken global oil markets, the government is considering replacing the existing petroleum pricing mechanism with a new system based on daily price revisions instead of the current schedule.
Under the proposed mechanism, the government’s role in determining petroleum prices would be significantly reduced.
According to the proposal, the Oil and Gas Regulatory Authority (OGRA) would be solely responsible for setting the prices of petrol, high-speed diesel, light diesel oil and kerosene every night. The revised prices would come into effect daily from 12:00 am.
It is worth noting that the government has initiated discussions on changing the petroleum pricing mechanism. During a meeting of the Petroleum Pricing Reforms Committee, chaired by Petroleum Minister Ali Pervaiz Malik, members reviewed the proposal for introducing daily fuel price revisions.
The committee will submit its recommendations to the prime minister, based on which a new mechanism for determining petroleum prices will be finalised.
According to economic experts, given the current situation in the Strait of Hormuz, it will be difficult for the government to implement daily price adjustments immediately. They believe the government is more likely to adopt an averaging mechanism, as several factors—including the exchange rate and the petroleum levy—must also be taken into account when setting fuel prices.
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