Pakistan may be on the verge of another significant increase in fuel prices as global crude oil markets continue their upward trend, driven by rising geopolitical tensions, including the situation in Iran and broader instability in the Middle East.
The ongoing surge in international oil rates is likely to have a direct effect on domestic fuel costs in the near future, potentially pushing them to record-breaking highs in the country.
Sources suggest that petrol prices could increase by as much as Rs. 55 per litre, while high-speed diesel may experience a sharper rise of up to Rs. 75 per litre. The Oil and Gas Regulatory Authority (OGRA) is expected to present its recommendations to the Petroleum Division within the next two days, paving the way for a final decision.
The ultimate approval lies with Prime Minister Shehbaz Sharif, who will decide whether the proposed increases are applied all at once or gradually over a two-week period. Officials are also reportedly considering maintaining current rates through continued subsidies.
This news comes shortly after a major adjustment earlier in March, when petrol and diesel prices were raised by Rs. 55 per litre due to tensions linked to Iran. At that time, petrol reached Rs. 321.17 per litre, while diesel climbed to Rs. 335.86 per litre.
OGRA had recommended another price increase via a summary, but the government chose not to implement it. However, kerosene oil prices were raised by Rs. 70.73 per litre, and a Rs. 200 per litre levy was introduced on high-octane fuel.
Federal Minister Musadik Malik noted that despite pressures from rising global oil prices, the government refrained from hiking fuel rates last week and continues to provide significant subsidies, reportedly exceeding Rs. 127 per litre for petrol and over Rs. 200 per litre for diesel.
