Global oil prices increase ahead of petrol price announcement in Pakistan

ISLAMABAD: Ahead of the expected petrol price announcement in Pakistan today, global oil prices extended their gains on Monday, driven by concerns over potential supply pressures from Middle Eastern producers.

The concerns have been fuelled by Israel’s intensifying attacks on Iranian-backed forces in the region.

Brent crude futures for November delivery rose by 51 cents, or 0.71 per cent, to reach $72.49 a barrel as of 0330 GMT. This contract expires on Monday, while the more actively traded December contract gained 50 cents, or 0.7 per cent, to settle at $72.04.

In Pakistan, the government is likely to announce new petrol and diesel prices for the upcoming two weeks today. According to latest reports, it is expected that the petrol price will remain same, with a minor reduction anticipated for high-speed diesel (HSD), effective from tomorrow (Tuesday).

Experts believe the current rates of the petroleum levy (PL) and general sales tax (GST) on fuel make it unlikely that petrol price will be slashed again. However, slight revisions in the prices of HSD, kerosene oil, and light diesel oil (LDO) can be expected in the first half of October 2024.

The price update will take into account the current economic situation, global oil trends, and other factors impacting the cost of petroleum products in Pakistan. The new prices will come into effect from 12:00 AM on October 1 and will remain valid until the next fortnightly review.

According to recent estimates, the price of petrol in Pakistan is expected to stay at Rs249.10 per litre.

Petrol price in Pakistan today (MS super and Hi-octane)

At petrol pumps in Islamabad, Rawalpindi, and Lahore today, petrol is being sold at Rs250 per litre, while high-octane petrol is priced at Rs266.90 per litre.

High-octane petrol in Pakistan is currently being sold at Rs17 per litre more than regular petrol.

Expected diesel price after reduction

The price of high-speed diesel may drop by Rs2.11, reducing it from Rs249.69 to Rs247.58 per litre.

Similarly, kerosene oil prices are expected to fall by Rs3.23 per litre, from Rs158.47 to Rs155.24 per litre, and LDO prices may decrease from Rs141.93 to Rs141.04 per litre. It is important to note that these estimates are subject to changes in global oil market dynamics.

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