As Pakistan prepares for the upcoming general elections on February 8, there’s a concern about a possible increase in petrol and diesel prices. The caretaker government, led by Prime Minister Anwaarul Haq Kakar, has been reducing petroleum prices, but now there’s talk of a significant raise of Rs 7 per litre.
If this decision goes through, it would be the first time petrol and diesel prices have gone up since November 1, 2023. Experts think the situation is unique this time, linking the potential price hike to recent events in the world.
Attacks on ships in the Red Sea by Houthi rebels in the Middle East have caused global oil prices to go up. On January 15, the government lowered the price of petrol by Rs 8 per litre, keeping high-speed diesel the same for the next two weeks.
The finance ministry said the caretaker prime minister approved this decision to ease financial pressure on the public, especially during this sensitive time.
After this decrease, the new price for petrol is Rs 259.34 per litre, and for high-speed diesel, it’s Rs 276.21 per litre. In the past week, the international market saw petrol prices go up from $83 to $89 per barrel, and high-speed diesel prices increased from $93 to $97 per barrel. Overall crude oil prices rose from $76 to $80 per barrel due to unrest in the Middle East, affecting oil prices worldwide.
Despite the global increase in oil prices, experts expect a relatively small impact on petrol and diesel prices in Pakistan. This is because the Pakistani rupee is stable against the US dollar, which helps to soften the potential rise in petroleum product prices. Analysts say that without this stabilizing influence, the increase in prices could have been more significant.
