Petroleum prices likely to increase in next review 

Authorities foresee Rs 7 per litre rise in petrol and diesel rates amidst escalating tensions in the Middle East

Industry officials have alerted citizens to brace for an increase in petrol and high-speed diesel (HSD) prices in the upcoming fortnightly review of petroleum prices. 

Citing a surge in international prices amidst escalating tensions in the Middle East, officials anticipate a rise of Rs7 per litre for both petrol and diesel by January 31, 2024. 

Petrol prices in the global market escalated from $83 to $89 per barrel, while HSD surged from $93 to $97-98 per barrel within a week. Crude oil prices similarly climbed from $76 to $80 per barrel. 

This potential hike would mark a departure from the recent trend of stability or slight decreases in domestic fuel prices since November 01, 2023. 

An oil sector official emphasized the current geopolitical turmoil, especially the Houthi attacks on ships in the Red Sea, which prompted retaliatory strikes from the US and UK against them in Yemen. This crisis catalysed a surge in global petroleum product prices over the past week, with petrol and HSD prices rising by four to five dollars per barrel. 

Despite stable local currency rates, officials warn of impending price hikes domestically, reflecting the global price fluctuations. They noted that resistance in international prices may temper further increases in the coming days. 

 

Monitoring Desk
Monitoring Desk
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