ISLAMABAD: The outgoing interim government may raise the prices of petroleum products tonight due to a surge in global oil prices amidst a rebound in demand. Sources indicate that petrol prices are expected to rise by approximately 2%, amounting to an increase of Rs5 per liter to reach Rs280.62, while the price of high-speed diesel will see Rs2 hike to Rs289.33 per liter.

Additionally, light diesel oil is projected to increase by Rs0.80 per liter, and kerosene oil by Rs0.70 per liter.

Petroleum product prices in Pakistan are adjusted every 15 days in accordance with global oil price trends and the exchange rate of the Pakistani rupee against the US dollar, which has remained stable recently.

The new prices announced by the government tonight will come into effect on March 1. When determining petroleum product prices, the government considers factors such as expected fuel consumption and supply costs for Pakistan State Oil, the state-owned oil company, as well as monthly tax targets.

In response to a surge in global oil prices, the government raised gasoline and diesel prices by Rs8.37 and Rs2.73 per liter, respectively, over the past two weeks. Geopolitical tensions in the Middle East and concerns about diminishing supplies contributed to nearly a 10% increase in crude oil prices in the first two months of 2024. Pakistan, which imports about 85% of its oil needs, faces challenges with its balance of payments and soaring inflation, which reached 28.3% in January.