Petrol Prices Set to Break All Records Once Again

Petroleum prices in Pakistan are likely to increase from 1 February 2022 following global price movements that extended gains to their highest levels in over seven years.

The price of petrol is expected to reach an all-time high of Rs. 158 per liter amid a hike in the rates of crude oil in the international market.

Industry players told reporters that they expect the government to hike petroleum prices by up to Rs. 10 per liter. Sources said the price of petrol (MS) could soar by Rs. 7 to Rs. 10 per liter, and High-Speed Diesel (HSD) by Rs. 10 per liter.

Currently, the per liter price of petrol is Rs. 147.83, high-speed diesel is Rs. 144.62, kerosine oil is Rs. 116.48, and light-speed diesel is Rs. 114.54. On 15 January  2022, the federal government increased petroleum prices by Rs. 3.01 to meet the petroleum levy target agreed with the International Monetary Fund.

The Finance Division is expected to make the final decision on 30 January after getting a go-ahead from Prime Minister Imran Khan.

It is noteworthy that in the global Brent oil market on Friday, the price of crude oil reached a seven-year high of $90.59 per barrel. Moreover, the crude oil price in the WTI market gained $1.05, or 1.2 percent, to $87.66 a barrel.

Reuters reported that supply constraints have shifted the six-month market structure for Brent into the dangerous territory of $6.92 a barrel, the worst since 2013. This indicates that current levels are greater than those seen in previous months, which often prompts dealers to release oil from storage in order to sell it quickly.