Govt likely to hike fuel prices by up to Rs11 per litre amid rising oil costs

January 28, 2024 (MLN): The government is likely to increase petrol and diesel prices by Rs11 and Rs6 per litre, respectively, for the first half of February, reflecting the surge in global oil prices.

The premium on both petrol and diesel has increased significantly by 11% and 25%, respectively, adding to the cost of the products.

Accordingly, the pricing estimates till January 26 show that the finished petroleum prices have risen by 5% to $87.7 per barrel since the last fortnight.

Meanwhile, finished diesel prices have gained 1% to $97.4 per barrel.

The local currency, on the other hand, has appreciated slightly against the USD since last fortnight's decision, standing at a weighted average rate of around PKR 279.87 per USD.

However, the gain is not enough to offset any significant increase in international prices.

It is important to note that there are still three more sessions left for the next pricing update; thus, the final prices will depend on global market movements and the exchange rate.

The government will announce the new prices at midnight on January 31, 2024, and they will remain in effect for the first half of February.

To recall, in the last fortnight, the government slashed the price of petrol by Rs8 per litre to Rs259.34 while maintaining diesel prices at Rs276.21 per litre.

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