Govt expected to raise petrol, diesel prices today

The prices of petroleum products in Pakistan are expected to rise for the next 15 days, driven by international market fluctuations and exchange rate instability, as per reports.

According to petroleum sector sources, the price of petrol is likely to increase by Rs6.60 per litre, bringing the expected new price to Rs 273.39 per litre, reflecting a 2.5% hike. 

Similarly, high-speed diesel (HSD) is anticipated to see a Rs5.27 per litre increase, pushing its price to Rs278.25 per litre, a 1.9% rise.

The expected increase is attributed primarily to the volatile exchange rate and adjustments in the Petroleum Levy (PL).

However, not all products are expected to see a price hike. Kerosene oil may decrease by Rs3.74 per litre, while light diesel oil (LDO) is expected to drop by Rs2.23 per litre, providing minor relief to sectors dependent on these fuels.

Read: Petrol price hiked by Rs8.36 per litre, diesel up by Rs10.39

The price hikes are likely due to rising global oil prices following a strong statement by US President Donald Trump, who threatened to tighten trade sanctions on Russia unless it halts its ongoing war against Ukraine.

Following the statement, crude oil prices surged past $71 per barrel, intensifying concerns for oil-importing countries. 

Analysts warn that if geopolitical tensions persist, international petroleum product (POL) prices will continue to rise, putting further pressure on economies like Pakistan, which relies heavily on fuel imports.

The government is expected to officially announce the revised fuel prices later today, following recommendations from the Oil and Gas Regulatory Authority (OGRA).