New updates on Petrol and diesel prices in Pakistan are expected to increase by Rs. 3-5 per liter for the second half of January 2025. This anticipated hike is due to a surge in global crude oil prices, which have reached a three-week high. The increase comes amidst concerns over supply disruptions and growing energy demand during the winter season.
Brent crude futures have risen by 0.35%, reaching $77.32 per barrel, marking their highest levels in three months. This surge represents the third consecutive weekly gain for crude oil, following a sharp drop to near three-year lows. Analysts attribute this rise to fears of supply disruptions outweighing broader economic uncertainties.
The Oil and Gas Regulatory Authority (OGRA) has submitted a proposal for the revised prices, which will be finalized by Prime Minister Shehbaz Sharif and the Finance Division. Once approved, the updated rates will take effect from January 16.
This anticipated hike follows the government’s recent adjustments to fuel prices at the start of January 2025. Petrol prices were raised by Rs. 0.56, bringing the rate to Rs. 252.66 per liter, while high-speed diesel saw an increase of Rs. 2.96, now priced at Rs. 258.34 per liter.
The increase in fuel prices is expected to have a significant impact on the cost of living and transportation expenses for the general public. Higher fuel prices can lead to increased costs for goods and services, as transportation costs are a major component of overall expenses. This, in turn, can contribute to inflationary pressures in the economy.
