The price of crude oil worldwide has increased from $53 to $55 per barrel. Federal government is expected to increase the price of domestic petroleum products by Rs. 1.00 to Rs. 2.50 per liter.
A modest increase in prices is projected for most petroleum commodities by the end of 2017 as demand and supplies strengthen.
A few months ago, different analysts and investment banks slashed oil price forecast as OPEC’s production cuts drew down the global oil oversupply. At the end of July, OPEC and IEA (International Energy Agency) started reporting stronger global oil demand.
Read More: US Crude Oil Price Breaches $50 Mark
Crude oil prices moved higher as US GDP of third quarter data surpassed economists’ expectations. Output grew at an annualized pace of 3 percent as compared to the average growth of 2.6 percent.
In the start of October, crude oil prices surged to $51 per barrel after Saudi Arabia announced that the supply of crude oil will be cut.
The government of Pakistan increased oil prices after the approval from Prime Minister in the start of October.
The price of petrol (RON 92) was increased by Rs. 2 per liter, while prices for High Speed Diesel and Light Diesel Oil are also increased by Rs. 2 per liter.