The Economic Ramifications of the Upcoming Petrol Price Surge in Pakistan

The Economic Ramifications of the Upcoming Petrol Price Surge in Pakistan.The caretaker administration in Karachi is preparing to raise the price of petrol for February 2024, in response to the rise in global oil prices.

Reports in local media said petrol price is expected to see Rs7.85 per litre and high-speed diesel (HSD) is likely to go up by Rs 2 to based on exchange rate adjustment for next two weeks.

According to reports, the anticipated increase in petrol prices will be determined by an exchange adjustment of Rs 2.75 per litre for petrol and Rs 4.50 per litre for HSD.

In the meantime, there will be a slight rise in the prices of kerosene oil (kero) and light diesel oil (LDO).

The anticipated rise in gasoline costs is projected to be the initial increase in petroleum product prices since November 2023, which has caused bewilderment among the general public due to its timing right before the upcoming general elections.

The determination of the recommended fuel prices by the Oil and Gas Regulatory Authority is still pending, and the ultimate verdict will be reached tomorrow, on January 31, 2024.

It has come to our attention that the caretakers have contemplated raising petrol prices, and this decision is being associated with the surge in global market prices due to regional tensions and the Gaza war.

In the midst of escalating regional tensions, the global market experienced a notable increase in the price of oil, with crude oil rising from $76 to $80 per barrel.