Petrol price expected to increase in upcoming review

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The federal government is expected to raise petrol price by Rs 3.50 per litre for the next fortnight, effective January 16, 2025.

In addition, light speed diesel may see a price hike of Rs 5, while kerosene oil price could increase by more than Rs 6 due to fluctuations in the global market.

The petroleum industry has submitted a working paper to the Oil and Gas Regulatory Authority (OGRA) detailing the proposed price adjustments. OGRA is set to review and determine the new fuel prices based on global market trends on January 15.

Following OGRA’s review, Prime Minister Shehbaz Sharif will give the final approval for the new rates.

The Ministry of Finance will then issue a formal notification, with the new fuel prices expected to take effect from January 16 and remain in place until January 31.

Previously, the prices of diesel and petrol were increased by Rs2.96 per litre and Rs0.56 per litre, respectively for the next 15 days.

On the other hand, Oil prices paused their rally on Tuesday, but remained near four-month highs, with the market's attention focused on the impact of new US sanctions on Russian oil exports to key buyers India and China.

Brent futures slipped 54 cents, or 0.67%, to $80.47 a barrel, while U.S. West Texas Intermediate (WTI) crude fell 53 cents, or 0.67% to $78.29 a barrel.