Following variations in global crude oil prices, consumers are likely to see another significant increase in petroleum product costs, with rates potentially increasing by up to 10% on February 1, 2022.
On Wednesday, oil hit a seven-year high of $90 a barrel in the worldwide market, thanks to tight crude supplies and geopolitical tensions in Europe and the Middle East.
The rise in oil prices was fueled in part by tensions between Russia and Ukraine. US President Joe Biden has stated that if Russia assaults Kiev, the US will consider placing penalties on Russian President Vladimir Putin.
Oil prices have also risen following a missile attack by Yemen’s Houthi movement on a United Arab Emirates (UAE) base.
These tensions, which have pushed up global oil prices, would have an impact on Pakistan.
According to sources, the price of high-speed diesel in Pakistan could rise by Rs10.72 per litre, or 9.49 percent, in the coming months.
This fuel is commonly utilised in the transportation and agriculture industries. Because of the potential for inflation, any increase in its price will be felt by everyone.
From February 1, the price of petrol is expected to rise by Rs5.85 per litre, or 5.03 percent. Petrol is a fuel that is used in automobiles and motorcycles, as well as a substitute for compressed natural gas (CNG).
CNG filling facilities in Sindh and Balochistan have remained closed during the winter season, resulting in increased demand for gasoline.
Kerosene oil prices could rise by Rs10.03 per litre, or 10.09 percent. Liquefied natural gas (LPG) is not available in distant sections of the country, hence kerosene oil is utilised for cooking.
Security personnel are also major users of this fuel in remote places such as Pakistan’s northwestern provinces.
Light diesel oil prices are expected to rise by Rs9.17 per litre, or 8.65 percent. In industries, light diesel oil is used.
JP-1 is predicted to rise by Rs10.04 per litre, JP-4 by Rs7.80 per litre, and JP-8 by Rs10.04 per litre among jet fuels.
Airlines are likely to raise passenger and cargo fares in response to a possible increase in the price of jet fuel, which is used in flights.
From Rs98,376 to Rs107,024 per tonne, furnace oil may become more expensive.
Furnace oil is utilised in power generation, but in recent months, the power sector has stopped receiving supply from domestic refineries.
Oil refineries have informed the government that if the current situation continues, their factories will be shut down. If refineries close, supplies of other petroleum products such as gasoline and high-speed diesel may be disrupted, potentially resulting in a new oil crisis in the country.
