Fuel prices in Pakistan are likely to climb in the next biweekly review as global oil markets continue to trend upward amid geopolitical uncertainty. Market analysts caution that motorists could soon notice higher rates at pumps across the country.

A recent assessment by brokerage house Arif Habib Limited suggests petrol may increase by up to Rs6.80 per liter. If the proposed adjustment is approved, the new rate would stand at roughly Rs263.30 per liter, compared to the current Rs258.17 per liter.

High-speed diesel is also projected to rise by a similar margin of Rs6.80 per liter. This adjustment would take diesel prices to approximately Rs282.50 per liter, up from Rs275.70 set in the previous pricing review.

Industry experts attribute the anticipated hike primarily to a 2.7% uptick in the price of Arab Light crude. Slightly higher import premiums have further intensified pressure on local fuel pricing.

In Pakistan, fuel rates are revised every two weeks, with authorities factoring in fluctuations in international crude prices and currency exchange rates. Analysts point out that ongoing geopolitical tensions in key oil-producing regions have disrupted supply expectations, contributing to recent price volatility.

Consumers are being advised to brace for the possible increase, as higher fuel costs typically  elevated transportation fares, rising goods prices, and broader impacts on household expenses. Businesses are also closely tracking developments to recalibrate their cost structures where necessary.

While the federal government aims to strike a balance between economic realities and public affordability, sustained strength in global oil prices has constrained efforts to keep domestic fuel rates unchanged.

Should the recommended changes receive official approval, petrol pumps nationwide will implement the revised rates immediately after notification. The forthcoming review is expected to attract significant public and media attention, given the widespread impact of fuel pricing on everyday life.

 
Credit: Independent News Pakistan (INP)