Following Russia’s attack on Ukraine, petrol prices in Pakistan are expected to rise by Rs. 9.59 per litre beginning March 1.
On February 16, the government raised the price of petroleum products by a record Rs. 12.03 per litre, to Rs. 159.86 per liter.
On February 16, the price of crude oil was $94 per barrel, and Russia’s invasion of Ukraine has pushed prices above $100 per barrel for the first time since 2014.
According to industry experts, Russia launched an attack on Crimea in 2014 by raising funds through petroleum products.
The United States (US) has shale oil, which is expensive but can be brought to market, lowering the prices of petroleum products to the detriment of Russian revenue.
It is also speculated that the US may ease sanctions on Iran in order to allow it to sell oil on the global market, bringing petrol prices back to $65 per barrel, but this option appears difficult to implement given Russian terms with Iran.
According to experts, if the current situation is not resolved immediately, the international price of crude oil could reach $125 per barrel.
Economists fear that in such a case, the petrol prices in Pakistan could rise to Rs. 200, affecting people with low incomes who are already bearing the brunt of price increases. Currently, petrol prices could rise by Rs. 9.59 per liter to Rs. 169.45 per liter.
Similarly, the price of high-speed diesel is expected to rise by Rs. 8.52 per liter, resulting in a new price of Rs. 162.67 per liter.
To read our blog on “OGRA suggests another petrol price increase by next week,” click here.
