ISLAMABAD: Fuel prices in Pakistan are likely to increase sharply, with high-speed diesel expected to rise by as much as Rs40 per liter and petrol by about Rs10 per liter when the government announces its next price review.
The expected increase stems from rising international oil prices tied to renewed conflict between Iran and the United States.
Preliminary estimates based on four days of Platts price assessments point to diesel registering the steepest increase, though the final figures will depend on the remaining day’s international pricing data before the government sets new rates.
The authorities are considering lowering the petroleum levy to offset part of the increase for consumers, according to reports.
The anticipated price hike has already led to supply disruptions in parts of the country. Officials said some market players have begun hoarding diesel in anticipation of higher prices, causing shortages at filling stations in several areas even though the country’s overall petroleum inventory remains adequate.
The supply situation was reviewed at a meeting of the National Committee on Monitoring and Coordination, which included representatives from the Oil Companies Advisory Council, the Oil and Gas Regulatory Authority and other government stakeholders.
The advisory council told the committee that petroleum product sales rose unusually during the first 15 days of July, well above normal consumption levels, raising concerns that extra volumes were being diverted for stockpiling rather than sold to consumers.
An analysis presented by the regulatory authority indicated the abnormal sales increase could be linked to hoarding by dealers and distributors anticipating a significant price increase, officials said.
The committee directed the regulatory authority to strengthen enforcement and increase market monitoring to curb hoarding and speculation. It also called on provincial governments to conduct inspections and take action against anyone found creating artificial shortages or disrupting fuel supplies.
Officials said the country’s petroleum stocks are sufficient to meet current demand and said there is no justification for panic buying or hoarding. The committee instructed oil marketing companies and other stakeholders to maintain uninterrupted fuel supplies and avoid inconveniencing consumers.
The expected price increase follows a sharp rise in global crude oil prices amid escalating tensions in the Middle East, which have raised concerns about potential disruptions to global energy supplies. Pakistan relies heavily on imported petroleum products, leaving its domestic fuel costs vulnerable to fluctuations in international markets.
