The prices of petroleum products are expected to increase further in the second half of October.
The price of Brent crude climbed past $82.86 per barrel at the time of filing this report, a three-year high, after rising 1.5 percent last week for a fourth consecutive weekly gain.
The jump in price followed the Organization of the Petroleum Exporting Countries’ (OPEC)’s decision not to boost oil production beyond current output parameters. The OPEC’s announcement came amid global pressure to increase production to meet rising energy demand.
Last week, the government increased the price of petrol by Rs. 4 per liter and that of high-speed diesel (HSD) by Rs. 2 per liter. The price of petrol is now Rs. 127.30 per liter while high-speed diesel sells at Rs. 122.04 per liter.
The Oil and Gas Regulatory Authority (OGRA) calculated the new prices based on the hike in prices in the international market and exchange rate variations in the past two weeks.
On Friday, Finance Minister Shaukat Tarin argued that petrol prices in Pakistan were still cheaper than most countries in the world, adding that only 16 countries had lower prices, and they all produced their own oil.
The government had also raised the prices of all petroleum products on 15 September.
The government is now implementing a revised mechanism under which the government revises oil prices every two weeks based on international prices published in Platt’s Oilgram. Previously, the government would make monthly calculations based on the import cost of Pakistan State Oil.
Pakistan imports crude oil and petroleum products from the Middle East, and these imports tend to be based on long-term contracts with countries like Kuwait, Saudi Arabia, and the United Arab Emirates.
