Expected petrol, diesel prices in Pakistan for Feb 2024

ISLAMABAD: As the general elections approach, there is a looming possibility of an increase in the prices of petrol and diesel in Pakistan in the next fortnightly review on January 31 for first half of February.

According to a report, the caretaker government is contemplating a potential increase of Rs 7 per liter for both petrol and diesel from January 31 to February 15.

However, the final decision rests on the proposal put forth by Oil and Gas Regulatory Authority (OGRA) .

Current petrol prices in Pakistan

Currently, the per litre petrol price stands at Rs259.34 while the high speed diesel is being sold for Rs276.21 per litre in Pakistan.

If the government approves Rs7 per litre increase in price of both commodities, the new price of petrol will be Rs266.34 per litre and diesel’s Rs283.21 per litre.

Experts point to recent incidents in the Middle East, particularly attacks on ships in the Red Sea by Houthi rebels, contributing to a spike in oil prices.

In the international market, petrol prices have risen from $83 to $89 per barrel over the past week, with high-speed diesel experiencing an increase from $93 to $97 per barrel. Crude oil, too, has seen an uptick from $76 to $80 per barrel.

Notably, the import of petroleum products in the first five months of the current financial year has witnessed a decline of 16%.

Experts suggest that the relatively stable exchange rate of the rupee against the US dollar may mitigate the expected increase in petrol and diesel prices in Pakistan.

Otherwise, the surge could have been more pronounced. The final decision and subsequent developments will be closely watched in the coming days.

Read also: Govt plans massive increase in gas prices, 41% hike expected