Petrol Price in Pakistan May Increase Tonight – OGRA Likely to Announce New Fuel Prices on July 20

Petrol price in Pakistan is expected to increase once again tonight as the government prepares to revise fuel prices under the newly introduced daily pricing mechanism. According to industry sources, the Oil and Gas Regulatory Authority (OGRA) has completed its pricing calculations and is expected to send its recommendations to the federal government for final approval.

The new petrol price in Pakistan and diesel rates will be applicable from 12:00 am on July 21 if approved.

Petrol Price in Pakistan May Go Up by Rs. 8 Per Litre

Initial estimates suggest that the petrol price in Pakistan could increase from Rs. 316.15 per litre to around Rs. 324.15 per litre, reflecting a possible hike of Rs. 8 per litre.

The rise comes after the international crude oil prices rose sharply in recent days and have raised the concern of increased cost of crude oil imports for Pakistan.

Diesel Price Could See a Much Bigger Increase

Petrol will likely see a price increase, but high-speed diesel (HSD) could see a significant price rise.

According to estimates, the current diesel price of Rs. 354.35 per litre could rise to approximately Rs. 395.10 per litre, an increase of Rs. 40.75 per litre.

According to sources, OGRA has already finished the necessary paperwork for the proposed revision. The actual hike, however, could be subject to change as the government may opt to offer some relief by tweaking tax and petroleum levies before issuing the official notification.

Why Are Fuel Prices Increasing?

The forecasted price hike for petrol in Pakistan follows global oil prices climbing as a result of rising tensions between Iran and the United States and fears of potential supply disruptions in the Strait of Hormuz.

According to international market data, Brent crude oil climbed from $86.09 per barrel on July 17 to $90.79 per barrel on July 20, recording an increase of $4.70 per barrel in just three days.

Pakistan is a big importer of petroleum products and fluctuations in crude oil prices across the globe have an adverse impact on fuel prices in Pakistan.

What Will Be the Impact?

The petroleum products price hike in Pakistan is likely to boost transportation and logistics costs, impacting freight services, agriculture, and the prices of basic commodities. Most of the heavy vehicles and farming equipment is operated on diesel, so any substantial rise typically results in a rise in inflation.

Higher petrol price in Pakistan will also contribute to the fuel expenses of millions of Pakistan’s motorists and motorcyclists nationwide.

Official Announcement Expected Tonight

The government’s new fuel pricing system works by OGRA first taking into account international oil prices, import premiums, freight charges, the rupee-dollar exchange rate, and other market considerations before making recommendations to the Ministry of Finance.

The Federal government is expected to announce the new petrol price in Pakistan later tonight. Proposed rates, if adopted, will come into effect at midnight.

Note: The proposed increase is based on estimates and official sources. The government has not yet issued the final notification, and the actual prices may differ from current projections.