In the lead-up to the general elections scheduled for February 8, Pakistan is bracing itself for a potential surge in petrol and diesel prices. Sources privy to the development said the Prime Minister Anwaarul Haq Kakar-led caretaker government after a series of consecutive reductions in petroleum prices, is considering a substantial increase of Rs 7 per liter, reported a section of the press. Should the decision materialise, it would mark the first uptick in petrol and diesel prices since November 1, 2023. Experts closely monitoring petroleum markets suggested that this time, the circumstances are unique, attributing the possible price hike to recent geopolitical events. The attacks on ships in the Red Sea by Houthi rebels in the Middle East have led to a notable increase in global oil prices.

In the past week alone, the international market has witnessed a surge in the price of petrol, climbing from $83 to $89 per barrel. Simultaneously, high-speed diesel prices have seen an increase from $93 to $97 per barrel. The overall crude oil price has experienced an uptick from $76 to $80 per barrel. The unrest in the Middle East has significantly contributed to this surge, affecting oil prices worldwide. Despite the global surge in oil prices, experts anticipate a relatively moderate impact on petrol and diesel prices in Pakistan. The stabilization of the Pakistani rupee against the US dollar is cited as a mitigating factor. Analysts suggest that without this stabilizing influence, the increase in petroleum product prices could have been more pronounced.

Credit: Independent News Pakistan (INP)