Uncertainty Looms Over Pakistan as Global Oil Prices Rise
In the wake of a 2% surge in global oil prices on Friday, concerns are mounting over the potential impact on petrol and diesel prices in Pakistan. With the next fortnightly review approaching, the government expected to announce new fuel prices next week, prompting speculation among the public.
The current petrol price in Pakistan stands at Rs283.38 per litre, with diesel priced at Rs304.05 per litre, and these rates slated to remain unchanged until November 15. However, the recent uptick in global oil prices has added an element of uncertainty to the equation.
During the previous review, conflicting reports surfaced regarding a possible decrease or increase in petrol prices. Ultimately, the government chose to maintain the status quo. The situation remains fluid, and it is unclear whether the recent 2% rise in global oil prices will translate into an increase in petrol prices in Pakistan.
The global oil market’s dynamics influenced by various factors, including Iraq’s expression of support for OPEC+’s oil cuts ahead of an upcoming meeting. Speculators covering short positions amid weekend uncertainty also contributed to the 2% increase. However, it’s worth noting that global oil prices concluded the week with a 4% decline, marking their third consecutive weekly drop.
In the United States, energy firms reduced the number of operating oil rigs for the second consecutive week, reaching the lowest count since January 2022. This reduction in rig count is indicative of potential future output changes. Brent futures rose by $1.42, settling at $81.43 a barrel, while US West Texas Intermediate (WTI) crude increased by $1.43, settling at $77.17.
As Pakistan awaits the upcoming fuel price announcement, the interplay of global oil market dynamics and domestic considerations adds an element of uncertainty to the direction petrol prices might take in the coming weeks. Stay tuned for further updates as the situation evolves.
