New Petroleum Prices for January Announced Today

New Petroleum Prices for January Announced Today

Karachi, January 15, 2025 – The government is set to announce the updated petroleum prices for the second half of January 2025, which will take effect from January 16, 2025.

This adjustment comes as global oil prices remain volatile, influenced by geopolitical tensions, supply disruptions, and shifting demand patterns in key markets. The upcoming changes are expected to affect the cost of various petroleum products, including petrol, diesel, and kerosene.

Reports suggest that the government is likely to raise the price of petrol by Rs 3.50 per litre for the upcoming period. This increase reflects the recent uptick in global petroleum prices, driven by a combination of global supply chain disruptions and geopolitical events impacting key oil-producing regions. Similarly, light-speed diesel is expected to see a price hike of approximately Rs 5 per litre, as international demand for diesel continues to rise, particularly in major global markets. Kerosene oil prices are also anticipated to increase by over Rs 6, following global fluctuations in crude oil prices that have led to higher production costs.

The Petroleum Division has already submitted a detailed working paper to the Oil and Gas Regulatory Authority (OGRA), outlining the proposed price revisions. OGRA is expected to review the paper, taking into account the prevailing market conditions and global oil price trends. Following this review, Prime Minister Shehbaz Sharif is expected to give the final approval for the new petroleum prices. This process is set to be concluded on January 15, 2025, after which the Ministry of Finance will officially announce the revised prices.

The new petroleum prices will remain in effect from January 16, 2025, to January 31, 2025. This price revision follows a previous increase in the first half of January, when diesel and petrol prices were raised by Rs 2.96 and Rs 0.56, respectively. Despite these adjustments, the government continues to face the challenge of managing the nation’s energy costs amidst fluctuating global oil markets.

On the international front, global oil prices showed some stabilization on Tuesday, with Brent crude futures falling by 54 cents to settle at $80.47 per barrel, and U.S. West Texas Intermediate (WTI) crude dropping 53 cents to close at $78.29 per barrel. While these declines suggest some market stabilization, oil prices remain near four-month highs, with market analysts closely watching the potential effects of new U.S. sanctions on Russian oil exports to major consumers such as India and China.

These price adjustments reflect the government’s ongoing efforts to balance domestic energy costs with the complexities of the global oil market, ensuring that the impact on consumers remains as manageable as possible despite international price fluctuations.