ISLAMABAD – Pakistanis are once again waiting for weekly fuel price announcement, hoping their wallets survive another Friday, despite uptick in global prices as the federal government is set to announce revised prices for petrol and high-speed diesel (HSD) today.
Soaring global crude oil prices are erasing any further relief on Petrol and diesel, as situation in Middle East remains fragile after recent attacks.
Last week, Pakistanis got Rs1.97 per litre cut in petrol and diesel prices, a relief that barely had time to settle before international oil markets decided otherwise but over the past week, Brent crude climbed from around $72 per barrel to nearly $76, while West Texas Intermediate (WTI) has risen from approximately $69 to $72 per barrel.
Amid surge in global oil prices, sources said Oil and Gas Regulatory Authority (OGRA) has completed its calculations with a recommendation to keep fuel prices unchanged. Whether that recommendation survives the government’s final deliberations is another question altogether.
Government officials are weighing multiple options. While international market trends provide enough justification for a slight increase, authorities are also exploring adjustments to the petroleum levy and other fiscal measures to soften the impact on consumers. In other words, the numbers may change, even if the price boards don’t.
For now, insiders suggest the most likely outcome is either no change or a minor adjustment. A significant reduction, however, appears to be about as likely as cheap fuel becoming the new normal.
The latest rise in global oil prices has been driven by renewed geopolitical tensions, including growing friction between the United States and Iran, military developments, and concerns over potential disruptions to Middle Eastern oil supplies. Although crude prices edged slightly lower on Friday, the overall weekly trend remained firmly upward.
Pakistan’s fuel pricing mechanism is based on the average international oil price during the review period rather than day-to-day fluctuations. Import premiums, freight costs, the rupee-dollar exchange rate, petroleum levy, and taxes also play a role. That means even if oil prices dip for a day, motorists shouldn’t expect miracles at the pump.
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