ISLAMABAD – OGRA jacked up petrol and high-speed diesel prices by more than Rs5 per litre, as turmoil in global oil markets threatens to keep fuel prices under pressure.
Petrol will cost Rs375.82 per litre from September 12, up Rs5.02 from the previous Rs370.80. High-speed diesel has been increased by Rs5.28, taking its price to Rs403.32 per litre from Rs398.04.
The latest adjustment by the Oil and Gas Regulatory Authority (OGRA) comes as international energy markets remain highly volatile, with disruptions to major shipping routes and attacks on energy infrastructure driving renewed fears over global fuel supplies.
The government has attributed the domestic increase to international factors, including movements in Platts prices, premiums and other petroleum-related costs.
For millions of Pakistanis already battling elevated food, transport and household expenses, the timing could hardly be more painful.
The immediate impact will be felt at petrol pumps, but the consequences are unlikely to stop there. More expensive fuel can push up transport and logistics costs, increasing pressure on businesses and potentially feeding into prices of food, consumer goods and other services.
Oil Crosses $100 as Global Supply Fears Mount
The latest Pakistani fuel-price increase comes against a dramatic backdrop in international oil markets. Brent crude was trading at $105.17 a barrel on Friday, while U.S. West Texas Intermediate stood at $100.04. Both benchmarks had earlier reached their highest levels since mid-May. Despite Friday’s decline, oil remained on course for a weekly gain of more than 9%, according to Reuters.
The market has been rattled by attacks along crucial Middle Eastern shipping routes, raising fears that disruptions could persist and restrict the movement of crude and refined petroleum products.
Diesel markets are facing an additional squeeze as geopolitical tensions collide with refinery disruptions. The pressure is coming from multiple directions. Disruptions linked to the Iran conflict have complicated shipping through key Gulf routes, while Ukrainian attacks on Russian refineries have further reduced available refining capacity.
Financial markets are also beginning to price in a longer period of energy-market instability. Commerzbank has raised its year-end Brent crude forecast to $85 per barrel, from its earlier projection of $75.
For Pakistan, the international oil shock is particularly significant because changes in global petroleum prices can quickly feed into domestic fuel costs. Higher transportation costs can ripple through supply chains, raising the cost of moving agricultural produce, industrial goods and everyday consumer products.
