With the rate potentially crossing the historic level of Rs400 per litre there are fears of another major increase in petrol prices in Pakistan.
According to media reports, a massive and unusual rise in global crude oil prices has raised the likelihood of a significant hike in petroleum product prices in the country.
The price of Brent crude has surpassed $110 per barrel which is expected to impact local fuel prices. As per the latest global market data up to April 28, Brent crude rose by $2.99 to reach $111.22 per barrel while US crude oil increased by $3.66 to cross $100.03 per barrel.
The increase in oil prices is largely attributed to rising tensions in the Middle East, particularly growing strain between United States and Iran, along with stalled peace negotiations which have created uncertainty in global markets.
Pakistan relies heavily on imported oil to meet its fuel needs, so any increase in global prices directly affects the domestic market.
Media reports say that if current global trends continue petrol prices in Pakistan could exceed Rs400 per litre.
Economic experts warn that if international oil prices remain at these elevated levels the public may face another severe wave of inflation in the first ten days of May.
Reports also indicate that petroleum levy collections are already close to surpassing the annual target of Rs1,468 billion yet consultations are underway to further increase the levy.
It is worth noting that last week, when petrol prices reached Rs393 per litre, there was widespread public anger across the country. Rising fuel costs are severely impacting the budgets of motorcyclists, rickshaw drivers and online ride hailing workers.
An expected increase in diesel prices could further affect freight transport, agriculture and industrial supply chains, raising the likelihood of higher prices for food and other essential goods.
Also read: Air travel expected to become more expensive
