Will petrol prices in Pakistan rise for the rest of November?

With the government set to revise fuel prices later tonight, petrol stations across the country say they are struggling to secure enough high speed diesel as supplies from several oil marketing companies have reportedly slowed to a worrying level.

Most market reports suggest that the price of diesel may rise in the new fortnightly review, while petrol could either fall slightly or stay unchanged. But nothing is confirmed, since the official decision will be announced after 9pm. The revised prices will take effect after midnight.

Dealers blame artificial shortage

Fuel traders warn that an artificial shortage of diesel has already begun to hit stations nationwide. In a letter sent to the Oil and Gas Regulatory Authority, the Petrol Pump Dealers Association said many companies have been cutting back supplies for almost a week.

According to the association, some companies are delivering very small quantities while others have halted supplies entirely. Several pumps say their orders are accepted but later cancelled, leaving tanker trucks parked for hours with no fuel being loaded. Many stations are now running dry and are unable to serve customers.

Dealers believe the cuts are deliberate, pointing out that companies appear to be holding stocks in anticipation of a possible price rise expected from November 16. They fear the situation could worsen if the government does not intervene soon.

They have asked Ogra to ensure that companies supply diesel according to each pump’s regular sales volume so that stations can operate normally again.

Price change expected at midnight

A fuel price adjustment is expected at midnight. Earlier this month, petrol was raised by Rs2.43 per litre to Rs265.45, while high speed diesel went up by Rs3.02 to Rs278.44.

Market estimates suggest that diesel could increase by up to Rs9.50 per litre for the next fortnight if current trends in international prices hold. Petrol, however, could see a drop of around Rs2 per litre. Since June 1, petrol has risen by a net Rs12.50 per litre and diesel by Rs23 per litre.

Kerosene and light diesel oil are also expected to become costlier, with projected increases of Rs8.80 and Rs7.15 per litre.

For now, the uncertainty has left both consumers and dealers waiting for tonight’s official announcement, hoping that supplies stabilise before the situation turns into a wider shortage.