Amidst consecutive reductions in fuel prices, the interim government is poised to announce an increase in petrol and high-speed diesel rates during the upcoming bi-weekly review on January 31.
This expected up tick in fuel prices is attributed to a recent surge in global oil rates, particularly in the Middle East, where tensions have escalated.
According to industry insiders, the government, following the recommendations of the Oil and Gas Regulatory Authority (OGRA), is likely to raise petrol and diesel prices by Rs7 per litre each.
This prospective increase comes after a period of stability and reduction in domestic fuel prices since November 1, 2023.
However, recent geopolitical developments, notably Houthi attacks in the Red Sea leading to US and UK interventions in Yemen, have influenced a rise in global prices for high-speed diesel, petrol, and crude oil.
Global petroleum product prices have surged by four to five dollars per barrel over the past week.
The international price of petrol climbed from $83 to $89 per barrel, HSD rose from $93 to $97-98 per barrel, and crude oil increased from $76 to $80 per barrel within a week.
Officials have emphasized that despite stable local currency values, global fluctuations in oil prices are expected to impact the domestic market.
The current resistance in global prices may stabilize in the coming days, but a significant increase in local prices is anticipated due to the recent surge in international rates.
