ISLAMABAD: The federal government is expected to announce new petrol and high-speed diesel (HSD) prices on Friday as rising international oil prices continue to influence the country’s latest fuel review.
Last week, consumers received a small relief when the government reduced petrol and diesel prices by Rs1.97 per litre after a decline in global oil prices. However, the situation has changed over the past week due to a sharp increase in crude oil prices.
Brent crude has climbed from nearly $72 per barrel last Friday to around $76 per barrel, while West Texas Intermediate (WTI) has increased from about $69 to $72 per barrel. This weekly rise of around 5 to 6 percent has made the government’s fuel pricing decision more challenging.
According to sources, the Oil and Gas Regulatory Authority (OGRA) has completed its pricing estimates and is currently leaning towards keeping petrol and diesel prices unchanged. The proposal will be reviewed by the government’s high-level committee before the final summary is sent for approval.
Current Fuel Prices in Pakistan
| POLs | Price per Litre |
| Petrol | Rs297.53 |
| Diesel | Rs309.50 |
Officials are considering several options. Although higher international oil prices could justify a slight increase in local fuel rates, the government is also examining the possibility of absorbing part of the additional cost by adjusting the petroleum levy and other fiscal measures to protect consumers from another increase.
At present, the most likely outcome is that fuel prices will either remain unchanged or see only a minor adjustment. A major reduction is considered unlikely under the current market conditions.
The recent increase in global crude prices has been linked to renewed geopolitical tensions, including growing friction between the United States and Iran, military developments, and concerns over possible disruptions to oil supplies from the Middle East. While oil prices eased slightly on Friday, they still recorded a strong weekly gain overall.
Pakistan determines fuel prices based on the average international oil prices during the review period rather than daily market movements. The pricing formula also includes import premiums, freight costs, the rupee-dollar exchange rate, petroleum levy, and applicable taxes. As a result, a one-day decline in crude prices is not enough to offset the gains recorded throughout the week.
The Ministry of Finance will announce the final decision after receiving approval from the prime minister based on recommendations submitted by the government’s pricing committee. The revised fuel prices will remain effective for the coming week.