Petrol price in Pakistan expected to increase again despite global decline

ISLAMABAD: After the recent drop in global oil prices, worries have emerged as reports suggest that Pakistanis might not see a reduction in petrol prices.

Despite the international drop, Pakistani citizens could face the discomfort of yet another petrol price hike, marking the third consecutive increase in less than two months.

The government is slated to unveil the new petrol prices before 11:59 pm tomorrow (February 29, 2024), with the adjustments expected to remain in effect for the next two weeks.

Latest reports suggest that the government is contemplating a Rs3.5 per litre increase in petrol prices from March 1, 2024.

Presently, considering the ex-depot petroleum rates, petrol is being retailed at Rs275.62 per litre in major cities including Islamabad, Lahore, Gujranwala, Sialkot, Faisalabad, Rawalpindi, and Gujrat. Diesel, on the other hand, is priced at Rs287.33 per litre.

However, there is a silver lining for diesel consumers, as the price of diesel is anticipated to hold steady during this period.

Internationally, oil prices experienced a setback on Wednesday, influenced by the possibility of delays in US interest rate cuts and a surprising surge in US crude stocks.

This development offsets potential gains from a likely extension of OPEC+ supply curbs.

Brent crude futures dipped 0.91 per cent to $82.89 a barrel, while US West Texas Intermediate (WTI) futures were down 1.05 per cent at $78.04.

Despite this global price dip, the masses in Pakistan, already grappling with inflation, may not enjoy the benefits of reduced international oil rates.

Read next: Air taxi service launched in Karachi