Fuel Price Hike Looms in Pakistan Amid Rising International Costs

ISLAMABAD: Fuel prices in Pakistan are on the verge of an increase after a series of five consecutive cuts. This change is primarily due to rising international prices, which have been affected by the ongoing crisis in the Middle East. According to official sources, the prices of key petroleum products, namely petrol and high-speed diesel (HSD), are expected to rise by approximately Rs5.50 and Rs13 per litre, respectively. This adjustment is set to take effect from October 16 and will last until October 31.

In recent weeks, the average price of petrol has surged by about $2.8 per barrel, while HSD has seen an increase of around $7 per barrel. These fluctuations in international prices are crucial as they directly impact local fuel costs. The current average price of petrol in the international market has climbed to nearly $79 per barrel, up from about $76 per barrel. Similarly, HSD prices have risen from $80.5 to approximately $87.5 per barrel.

During this fortnight, the import premium for both petrol and HSD has remained relatively stable, standing at $8.7 and $5 per barrel, respectively. Additionally, the exchange rate has not shown significant movement, which means that the local prices will be influenced mainly by the changes in international markets. Currently, the ex-depot price of petrol is Rs247.03 per litre, while HSD is priced at Rs246.69 per litre. However, in the retail market, consumers are paying over Rs248 per litre for both products.

Petrol is predominantly used in private transport, including small vehicles, rickshaws, and two-wheelers. This makes it a vital commodity for the middle and lower-middle classes, as any increase in fuel prices can significantly affect their daily budgets. With the cost of living already a concern for many families, this potential rise in fuel prices could add further strain.

As the situation unfolds, it is essential for consumers to stay informed about these changes. Understanding the factors that influence fuel prices can help individuals and families better manage their budgets. While the rise in fuel prices may seem inevitable, being aware of the market dynamics can empower consumers to make informed decisions regarding their transportation and fuel usage. As always, it is advisable to keep an eye on the news for any updates regarding fuel prices and to plan accordingly.