Shafaqna Pakistan: Petrol and diesel prices in Pakistan are expected to rise sharply next week as increasing global crude oil prices, fuelled by escalating tensions in the Middle East, continue to put upward pressure on fuel costs.
International oil prices extended their gains on Friday amid growing concerns over the standoff between the United States and Iran. Market sentiment was also affected by fears of potential disruptions to oil shipments through the Strait of Hormuz and reports claiming that Iran had directed the Houthi movement to prepare for blocking the Red Sea shipping route.
Oil rises on intensifying US-Iran hostilities and threat of Red Sea closure
Brent crude futures rose by $1.05, or nearly 1.25%, to $85.28 per barrel, while US West Texas Intermediate (WTI) crude gained $1.03, or 1.3%, to reach $79.98 per barrel, recovering losses recorded in the previous trading session.
Both global oil benchmarks have gained around 12% this week. Brent crude is on course for its third consecutive weekly increase, while WTI is set for its second straight weekly gain.
Reflecting the global trend, diesel prices in Pakistan are expected to increase by Rs40 per litre, while petrol may become Rs10 per litre more expensive next week. However, the government is reportedly considering reducing the petroleum levy to soften the impact of the expected price hike.
Meanwhile, the National Committee on Monitoring and Coordination has taken serious notice of the alleged hoarding of petroleum products by certain market players and has directed the Oil and Gas Regulatory Authority (OGRA) to take the necessary action against those involved.
Source: Dunya News
