ISLAMABAD: High-speed diesel (HSD) prices are likely to witness a sharp increase of up to Rs40 per litre from July 18 at 12.10am, while petrol may become costlier by around Rs10 per litre in the upcoming fortnightly review, driven by a spike in international oil prices following the renewed conflict involving Iran and the US.
According to preliminary estimates based on the first four days of Platts price assessments, HSD is expected to register the steepest increase although the final adjustment will depend on the remaining day’s international pricing before the government announces revised petroleum prices. Officials said the government is also examining the option of reducing the petroleum levy to partially absorb the increase and provide some relief to consumers.
The anticipated hike has already triggered supply disruptions in parts of the country, where reports suggest that some unscrupulous market players have started hoarding high-speed diesel in anticipation of higher prices. The practice has reportedly resulted in shortages in several parts of the country, with a number of filling stations temporarily running out of diesel stocks despite the country's overall petroleum inventory remaining adequate.
The emerging supply situation came under review at a meeting of the National Committee on Monitoring and Coordination (NCMC), attended by representatives of the Oil Companies Advisory Council (OCAC), the Oil and Gas Regulatory Authority (Ogra) and other relevant government stakeholders.
During the meeting, the OCAC highlighted supply-side challenges arising from an unusual increase in petroleum product sales during the first 15 days of July. According to officials, the surge in demand was significantly higher than normal consumption patterns, raising concerns that the additional volumes were being diverted for stockpiling rather than genuine consumer use.
Ogra’s analysis presented at the meeting also indicated that the abnormal increase in sales could be linked to hoarding by certain dealers and distributors expecting a substantial upward revision in petroleum prices.
Taking serious notice of the situation, the NCMC directed Ogra to strengthen its enforcement mechanism and intensify market monitoring to curb hoarding and speculative practices. The committee also called upon provincial governments to launch inspections and take immediate action against anyone found creating artificial shortages or disrupting fuel supplies.
Officials maintained that the country’s petroleum stocks remain sufficient to meet current demand and stressed that there is no justification for panic buying or hoarding. The committee instructed oil marketing companies and all other stakeholders to ensure uninterrupted supply of petroleum products across the country and prevent any inconvenience to consumers.
The expected increase in fuel prices follows a sharp rise in global crude oil prices amid escalating geopolitical tensions in the Middle East, which have heightened concerns over potential disruptions to global energy supplies. Pakistan, which relies heavily on imported petroleum products, remains vulnerable to fluctuations in international oil markets, with changes in global prices directly affecting domestic fuel costs.
