As Pakistan gears up for the general elections scheduled for February 8, there are concerns about a potential increase in petrol price across the country. As per media reports after a series of consecutive reductions, the current government is contemplating a significant hike in the prices of petrol and diesel.
Price Hike
The report suggests that the government may announce an increase of up to Rs. 7 for petrol and diesel from January 31 to February 15. However, the final decision will be made after considering the recommendations of the Oil and Gas Regulatory Authority (OGRA).
If there is indeed a hike in petroleum product prices, it will mark the first increase since November 1, 2023. Experts monitoring the petroleum sector anticipate a different scenario this time due to recent incidents in the Middle East.
Last week, attacks on oil vessels by Houthis in the Red Sea have led to a surge in global oil prices. This international development is expected to impact the prices of petrol and diesel in Pakistan.
Global Trends
International markets witnessed a significant increase in petrol prices, rising from $83 to $89 per barrel within the past week. Similarly, the price of high-speed diesel also surged from $93 to $97 per barrel, while crude oil climbed from $76 to $80 per barrel.
Analysts believe that the stability of the Pakistani Rupee against the US Dollar might mitigate the expected increase in petrol and diesel prices, although a substantial rise in petroleum product prices was a possibility.
As the world grapples with these fluctuations, the upcoming general elections in Pakistan add another layer of complexity to the already vulnerable political and economic situation. The economic impact of any decision regarding petroleum prices will undoubtedly be closely monitored by the public and will likely play a role in shaping the political landscape in the coming weeks.
