Minor Price Adjustments for Petrol and Diesel Effective November 1
As a response to the ongoing Middle East conflict, Pakistan will experience a slight rise in petrol prices, around Rs2.43 per litre, starting from November 1, while diesel prices are expected to decrease by Rs5.65 per litre. These adjustments are in line with global oil price shifts, which are primarily driven by geopolitical tensions in the Middle East. The international petroleum price has risen to $90.72 per barrel, leading to an upward revision in petrol prices, while diesel prices have fallen to $112.53 per barrel, resulting in a downward revision for diesel. The government will announce the next pricing update on October 31, with future fuel prices dependent on global market dynamics and exchange rate fluctuations. International oil benchmarks also show a similar price trend.
Karobar
ISLAMABAD: Petrol prices in Pakistan are poised for a modest increase of approximately Rs2.43 per litre starting from November 1, in response to the ongoing conflict in the Middle East. However, diesel prices are expected to decrease by Rs5.65 per litre. These shifts align with changes in global oil prices, which have necessitated adjustments in the local fuel market.
Global Geopolitical Tensions Impact Oil Prices
The recent surge in global oil prices, fueled by geopolitical tensions in the Middle East, has prompted a slight upward revision in Pakistan's petrol prices. As of October 26, 2023, the estimated international petroleum price stands at an average of $90.72 per barrel, a significant increase compared to the previous fortnight's average of $87.74 per barrel. Consequently, the ex-refinery cost for petrol is projected to be around Rs204.76 per litre, compared to the earlier rate of Rs202.33 per litre.
Conversely, diesel prices are expected to see a reduction of approximately Rs5.65 per litre, reflecting the decline in international diesel prices. Globally, diesel prices have dropped to $112.53 per barrel, down from the previous fortnight's rate of $114.65 per barrel. This results in the ex-refinery cost of diesel being set at Rs225.74 per litre, compared to the prior rate of Rs231.38 per litre.
It's important to note that there are still approximately three trading sessions left before the next pricing update, indicating that the future trajectory of fuel prices will be influenced by global market dynamics and exchange rate fluctuations.
Pakistan's fuel prices will continue to evolve in response to international developments.
The government is set to release the next fortnightly update on October 31, 2023, offering further insights into how Pakistan's fuel prices will continue to evolve in response to international developments.
International oil benchmarks also mirror this trend, with an average price of $90.25 per barrel compared to the previous fortnight's weighted average price of $87.35 per barrel.
