With the general elections approaching in Pakistan on February 8, there are worries about a potential rise in the cost of petrol nationwide. According to reports in the media, the current government is considering a significant increase in petrol and diesel prices after a series of consecutive reductions.
Potential Price Increase
Reports indicate that the government may announce a hike of up to Rs. 7 for petrol and diesel from January 31 to February 15. However, the final decision will depend on the recommendations of the Oil and Gas Regulatory Authority (OGRA).
If there is an increase in the prices of petroleum products, it will be the first since November 1, 2023. Experts in the petroleum sector anticipate a different situation this time due to recent events in the Middle East.
Attacks on oil vessels in the Red Sea by Houthis in the Arabian Sea last week have led to a spike in global oil prices. This international development is expected to impact the prices of petrol and diesel in Pakistan.
Global Market Trends
International markets have seen a significant increase in petrol prices, rising from $83 to $89 per barrel within the past week. Similarly, the price of high-speed diesel has also gone up from $93 to $97 per barrel, while crude oil has climbed from $76 to $80 per barrel.
Analysts believe that the stability of the Pakistani Rupee against the US Dollar might offset the expected rise in petrol and diesel prices, although a substantial increase in petroleum product prices is still a possibility.
With the world dealing with these fluctuations, the upcoming general elections in Pakistan add another layer of complexity to an already vulnerable political and economic situation. The economic impact of any decision on petroleum prices will undoubtedly be closely watched by the public and is likely to play a role in shaping the political landscape in the coming weeks.
