The prices of petroleum products in Pakistan are expected to increase from November 16, following recommendations from the petroleum industry for a significant adjustment in fuel rates for the second half of November.
According to reports from local media, the industry has proposed an increase of up to Rs 9.60 per litre for diesel, while petrol prices could rise by around Rs 1.96 per litre. Similarly, kerosene oil may see a hike of Rs 8.82 per litre, and light diesel oil is likely to go up by Rs 7.15 per litre.
If approved, the new prices would bring petrol to Rs 263.49 per litre and high-speed diesel to Rs 288.04 per litre, marking another upward revision in fuel costs amid global oil market fluctuations.
The Oil and Gas Regulatory Authority (OGRA) is expected to submit its summary to the federal government on Saturday. Final approval will then rest with the Prime Minister, after which the Ministry of Finance will issue an official notification confirming the revised prices.
This anticipated increase comes despite a notable decline in international oil prices over the past week. Global benchmarks saw a sharp fall after the Organization of the Petroleum Exporting Countries (OPEC) revised its earlier forecast, suggesting that the global oil market will reach equilibrium by next year rather than facing a supply deficit.
Experts attribute this revised outlook to the rise in non-OPEC oil production — especially from the United States, Brazil, and Guyana — and a recovery in global inventories. As a result, Brent crude prices dropped by 3.67% to $62.77 per barrel, while West Texas Intermediate (WTI) fell by 4.1% to $58.55 per barrel.
Despite these international trends, the depreciation of the Pakistani rupee and local tax adjustments have continued to influence domestic fuel pricing. Analysts suggest that the upcoming price hike could add further pressure on inflation and transportation costs, affecting consumers and businesses alike.
With global demand projected to grow by 1.6 million barrels per day in the coming year, market experts believe the oil sector may stabilize, but price volatility in Pakistan will remain linked to currency fluctuations, taxation policies, and global supply trends.
