The fuel prices in Pakistan were expected to take a bump from 1st of November. The Oil and Gas Regulatory Authority had suggested an increase of Rs11.53 per litre for petrol and Rs8.49 per litre for the price of diesel.
But on Saturday 30th, the PM Office issued a statement, saying that in a bid to provide relief to the people of Pakistan, the government has decided not to increase prices of POL products. The petroleum prices have been getting a fortnightly bump almost consistently for the last few months. The prices of petrol and diesel were increased to Rs137.79 per litre and Rs134.48 per litre respectively on 16th October 2021. The petroleum prices for at least the first 15 days of November will remain as follows:The fuel prices have seen an upward trend lately not only in Pakistan but in other markets as well. Since most of the fuel consumed by Pakistan is imported, our market sees the direct impact whenever there is a fluctuation in fuel prices in the international market. Only last week, Chairman OGRA mentioned in his briefing to the Senate committee that the diesel costs around Rs109 per litre on the port, whereas around Rs25 is added on top of the base price which covers other expenses including taxes.
Many Asian countries have already increased the prices whereas Europe has seen a similar trend which is alarming considering the upcoming winters will obviously increase the demand and consumption of fossil fuels. Market trends after post-COVID have been difficult to predict. It will be interesting to see how the fossil fuel dependent industries will react to increase in fuel prices globally.