Petrol Prices Rise by 11 Rupees in Two Days
3 days ago
At a glance
- Petrol prices have increased by 11 rupees per liter in the past two days.
- A new daily petrol pricing formula has been introduced, causing dealer discontent.
- Commercial fuel stocks have declined, raising concerns about potential shortages.
Story so far
Petrol prices in Pakistan have increased by 11 rupees per liter over the past two days, alongside a significant hike in diesel prices. The government has introduced a new daily petrol price formula, which has caused discontent among dealers. Concerns are growing over a decline in commercial fuel stocks, raising the possibility of diesel shortages if key maritime straits remain closed. Smuggled fuel from Iran has ceased due to security concerns. Domestic stocks have significantly declined compared to earlier levels, with the Strait of Hormuz already closed and crude oil now arriving mainly through Bab el-Mandeb.
Latest development
Petrol prices in Pakistan have reportedly seen an increase of 11 rupees per liter over the past two days, adding to existing concerns about fuel supply and pricing.
Latest updates
Petrol prices in Pakistan have reportedly increased by 11 rupees per liter over the past two days.
The petroleum sector is currently facing renewed attention as the government shifts to a daily pricing mechanism amidst sharply rising international petroleum product prices. This new system has reportedly caused discontent among dealers, as it reduces the inventory gains they previously earned from price increases.
Concerns are also growing over a decline in commercial stocks, which have fallen to approximately two-thirds or less of their levels recorded at the beginning of June. This situation raises the possibility of diesel shortages within a few weeks if both the Strait of Hormuz and Bab el-Mandeb remain closed. Average demand in July increased from a planned 21,000 tonnes per day to actual sales of around 25,000 tonnes per day, while imports had been planned at a lower level. Additionally, smuggled fuel volumes from Iran have ceased due to the precarious security situation in Balochistan.
As of July 20, domestic stocks had declined to 16 days of petrol supply (23 days including shipments en route) and 21 days of diesel supply. This compares to 29 days and 44 days, respectively, on June 1. The Strait of Hormuz is already closed, with crude oil now arriving mainly through Bab el-Mandeb.
A daily petrol price formula has been introduced in Pakistan, coinciding with recent fuel hikes that saw petrol prices increase by 4.5 rupees per liter and diesel by approximately 13 rupees per liter.
The government has introduced a new petroleum policy, which has reportedly sparked fresh controversy and indicates a change in course regarding fuel price decisions.
The Oil and Gas Regulatory Authority (OGRA) has confirmed that the current levy on petrol stands at 85 rupees per liter.
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