Govt Could Raise Petrol Prices Again This Week As Brent Nears $110 per Barrel

The federal government might just have discovered yet another excuse to again increase petrol and diesel prices this week following last week’s abrupt hike shortly after the Executive Board of the International Monetary Fund decided to deposit $1.3 billion in the State Bank of Pakistan.

Crude oil prices have moved closer to the $110 per barrel mark in international markets after US President Donald Trump’s recent rejection of Iran’s proposal to end the Gulf War sent global oil stocks towards the sky.

The recent upward trend has been driven by tighter global supply conditions and ongoing geopolitical tensions, which continue to keep pressure on energy markets.

At the time of press, Brent was up almost 2.5 percent at $107 per barrel while Western Texas Intermediate (WTI) was also up 3 percent at $101 per barrel.

With global oil benchmarks climbing, the federal government may once again raise fuel prices upward in Friday’s review.

Any such move would directly impact inflation-sensitive sectors, as higher petrol rates typically feed into transport and goods prices across the economy.

Last week, Prime Minister Shehbaz Sharif sanctioned an increase of Rs. 15 per litre in the price of diesel and Rs. 14.92 per litre for petrol.

The price of diesel is now Rs. 414.58 per litre and petrol Rs. 414.78 per litre.

The federal government didn’t have to raise fuel prices last week as international rates were already falling. However, it opted to raise the petroleum levy for higher tax deduction.