Petrol price increase Pakistan is expected in the coming week as the federal government has assured the International Monetary Fund of adjusting petroleum prices in line with global market trends.
📌 Government Assurance to IMF
According to official sources, the government has communicated to the IMF that petroleum prices will be aligned with international rates. This assurance came after concerns were raised by the IMF regarding continued subsidies on petroleum products.
The development indicates a shift toward market-based pricing, which may result in a significant increase in fuel prices across the country.
📊 Expected Price Increase Details
Reports suggest that petroleum prices could rise by more than Rs100 per litre starting next week. The increase is being considered due to sustained high prices in the global oil market.
Currently, international petroleum prices are reported to be between $106 and $108 per barrel, which has maintained upward pressure on domestic pricing.
The expected revision may affect petrol and diesel rates depending on final approval by authorities.
⚙️ Previous Price Adjustment Decisions
Sources indicate that Prime Minister Shehbaz Sharif had earlier rejected proposals to increase petrol prices by Rs95 per litre and diesel prices by Rs203 per litre.
Instead of implementing the increase, the government opted to maintain prices temporarily by providing financial support to oil companies through the development budget.
This decision delayed the price hike but added pressure on fiscal resources.
💰 Use of Development Budget for Subsidy
To keep fuel prices stable, funds were reportedly allocated from the Public Sector Development Programme (PSDP). Out of Rs100 billion allocated, approximately Rs56 billion was already used as subsidy in the previous week.
Officials have indicated that if additional funds are diverted from the development budget, the extent of the upcoming price increase may be reduced.
However, continued use of development funds for subsidies may impact other planned projects.
🌍 Global Oil Prices Impact
Global oil prices remain a key factor influencing domestic fuel pricing. The international market has consistently shown prices above $100 per barrel in recent weeks.
These global trends directly affect the cost of petroleum imports, making it necessary for local prices to be adjusted accordingly.
The linkage between international and domestic pricing is part of ongoing economic management policies.
⚠️ IMF Concerns on Subsidy Policy
The IMF has expressed concerns about the continuation of subsidies on petroleum products. According to sources, the institution has advised limiting subsidies to maintain fiscal discipline.
The government’s assurance to adjust prices reflects an effort to meet IMF expectations and maintain ongoing financial arrangements.
This development highlights the balance between economic stability and public pricing policies.
🏛️ Final Decision Pending Consultation
The final decision regarding petroleum price adjustment will be taken after consultation with provincial governments. Authorities are expected to finalize the revised pricing structure before the next review cycle.
The outcome of these discussions will determine the exact increase in fuel prices.