Pakistan is likely to face another hike in petroleum prices, with an increase of up to 3 rupees per liter for both petrol and diesel starting January 16, 2025. This anticipated price increase follows a surge in global crude oil prices, which have reached their highest levels in nearly three weeks.
The price hike is attributed to disruptions in global oil supply and growing concerns over rising energy demand. Despite no major changes in Pakistan’s exchange rate, the adjustment in oil prices will likely result in higher costs for petroleum products in the coming days.
Brent crude oil futures, a global benchmark, rose by 0.35% to $77.32 per barrel, marking the third consecutive weekly increase. This follows a sharp decline in oil prices to a three-year low, causing concerns over supply and demand in the market.
In December 2024, the Pakistani government had already increased petroleum prices. Petrol saw an increase of 0.56 rupees per liter, reaching 252.66 rupees, while high-speed diesel (HSD) rose by 2.96 rupees per liter, bringing the price to 258.34 rupees.
The Treasury Division is expected to announce new prices after approval from Prime Minister Shehbaz Sharif and the Finance Minister. Sources suggest that petrol and diesel prices could see an increase of up to 3 rupees per liter due to fluctuations in global oil markets.
On the global front, the oil market briefly dipped on Tuesday, with Brent crude futures falling by 0.37% to $76.02 per barrel, and U.S. West Texas Intermediate (WTI) dropping by 0.45% to $73.23 per barrel. However, these declines followed a period of consistent price hikes fueled by expectations of fiscal stimulus in China to address its economic challenges.
Additionally, a stronger U.S. dollar has contributed to rising oil prices, making crude oil more expensive for holders of other currencies. Geopolitical tensions, particularly in Syria, and uncertainty surrounding U.S. leadership are also adding to the ongoing volatility of oil prices.
