Islamabad, January 14, 2025 – The Government of Pakistan is poised to revise petroleum prices for the upcoming fortnight, with new rates set to take effect from January 16, 2025.
As global oil prices fluctuate, the authorities are expected to implement changes that will impact the cost of several petroleum products, including petrol, diesel, and kerosene.
According to reports, the federal government is likely to increase the price of petrol by Rs 3.50 per litre for the next period, effective from January 16. This adjustment follows recent trends in global petroleum markets, which have seen a rise in prices due to a combination of geopolitical events and supply chain issues.
In addition to petrol, light speed diesel is also expected to experience a price hike of around Rs 5 per litre. The increase in light diesel prices is largely attributed to shifts in international fuel markets, where demand for diesel has been growing in several key regions. Similarly, kerosene oil is forecast to rise by more than Rs 6, reflecting global fluctuations in crude oil prices.
The petroleum industry has submitted a detailed working paper to the Oil and Gas Regulatory Authority (OGRA), outlining the proposed price changes. OGRA will review these recommendations, taking into account global oil price trends and market conditions. This review is scheduled for January 15, 2025, following which Prime Minister Shehbaz Sharif will give his final approval for the new rates.
Once approved, the Ministry of Finance will issue an official notification, confirming the revised petroleum prices, which will be applicable from January 16, 2025 to January 31, 2025. This adjustment comes after the government raised prices of diesel and petrol by Rs 2.96 and Rs 0.56, respectively, during the last fortnight.
Meanwhile, global oil markets showed signs of stabilization on Tuesday, as Brent crude futures dipped 54 cents to settle at $80.47 per barrel. Similarly, U.S. West Texas Intermediate (WTI) crude fell 53 cents, closing at $78.29 per barrel. Despite the slight dip, oil prices remain near four-month highs, with market observers closely monitoring the potential impact of new U.S. sanctions on Russian oil exports to countries like India and China.
These adjustments in petroleum prices are a reflection of the government’s continued efforts to manage the nation’s energy costs amidst fluctuating global oil markets.