By Pakistan is likely to witness a significant increase in petroleum product prices from February 1, as the Oil and Gas Regulatory Authority (OGRA) has finalized its working on revised fuel rates and is set to forward a summary to the Petroleum Division. The anticipated adjustments come amid fluctuations in global oil prices and ongoing exchange rate movements, which continue to influence domestic fuel pricing.
Expected Changes in Fuel Prices
According to sources familiar with the matter, high-speed diesel (HSD) is expected to see the sharpest increase, with prices likely to rise by Rs. 9.47 per litre. Light diesel oil (LDO) may also become more expensive, with a proposed increase of Rs. 6.95 per litre. Additionally, kerosene oil prices are expected to climb by Rs. 3.69 per litre, further impacting households that rely on kerosene for heating and cooking, particularly in colder regions.
In contrast, petrol prices may offer slight relief to consumers, as they are expected to fall by Rs. 0.36 per litre or remain unchanged. This marginal adjustment reflects comparatively stable trends in the international petrol market compared to diesel-linked products.
Factors Behind the Proposed Price Adjustment
Officials stated that the proposed price changes are based primarily on international oil market trends and exchange rate fluctuations. Since Pakistan relies heavily on imported petroleum products, any change in global crude prices or currency parity directly affects local fuel costs.
OGRA has completed its technical assessment and will submit the summary to the Petroleum Division for review. The final decision will be taken after consultations with Prime Minister Shehbaz Sharif, following which the government will determine whether to pass on the full impact to consumers or absorb part of the increase through fiscal measures.
Notification and Implementation Timeline
The Petroleum Division is expected to issue an official notification on January 31, outlining the revised prices. If approved, the new fuel rates will come into effect from February 1, in line with the government’s fortnightly fuel pricing mechanism.
Economic Impact of Rising Fuel Prices
Frequent changes in fuel prices continue to have a direct impact on inflation and transportation costs across Pakistan. In particular, increases in diesel prices tend to ripple through the economy, raising freight charges, public transport fares, and food prices. This places additional pressure on household budgets already strained by inflation.
As consumers await the final announcement, analysts caution that sustained fuel price volatility remains a key challenge for economic stability, especially for transport-dependent sectors and essential commodities.
