Pakistan Set to Escalate Petroleum Prices from November 16

Pakistan Set to Escalate Petroleum Prices from November 16

Islamabad, November 13, 2024 – Pakistan is preparing to implement another surge in petroleum prices, marking the second increase within November, as reported by official sources. This anticipated adjustment, effective from November 16, 2024, is driven by escalating premiums on petroleum products in the global market, which have significantly raised import costs and strained domestic resources.

According to sources, the government is considering a considerable rise across key petroleum categories, affecting fuel expenses for both the public and industrial sectors. The proposed increases cover several essential petroleum products:

• Petrol Price Increase: A proposed hike of PKR 2.58 per liter would raise the petrol price from PKR 248.38 to PKR 250.96. This adjustment, although modest compared to previous spikes, is expected to have a ripple effect on transportation costs, placing additional strain on household budgets and logistics operations across Pakistan.

• High-Speed Diesel: High-speed diesel (HSD), another major petroleum product, is expected to see a larger increase of PKR 5.91 per liter, lifting the price from PKR 255.14 to PKR 261.05 per liter. As HSD fuels much of Pakistan’s agricultural and transport sectors, this rise is projected to intensify costs in these industries, impacting both food distribution and production expenses.

• Kerosene Oil: Kerosene, a vital petroleum fuel for many rural households, may experience an increase of PKR 5.54, moving from PKR 161.54 to PKR 167.08 per liter. This increase is likely to burden low-income households, especially those reliant on kerosene for cooking and heating, further emphasizing the need for affordable energy alternatives.

• Light Diesel Oil (LDO): Light diesel oil, mainly used in industries and small machinery, is likely to see an increment of PKR 5.90 per liter, shifting from PKR 147.51 to PKR 153.41. The potential rise in LDO prices may lead to higher manufacturing and production costs, impacting the broader economy and the prices of various consumer goods.

These proposed adjustments come amid surging global petroleum prices, as heightened international demand continues to drive premiums higher. This ongoing premium increase has impacted Pakistan’s domestic petroleum markets, necessitating price revisions to balance import costs and maintain fiscal stability.

If confirmed, the revised petroleum prices will take effect on November 16, rendering fuel significantly more expensive nationwide. As the final decision looms, industry experts anticipate added pressure on inflation, particularly affecting food and transportation costs. The government is expected to confirm and announce these adjustments soon, marking a development that could ripple through multiple sectors, underscoring the pressing need for sustainable energy strategies amid a volatile global petroleum market.