The proposed fuel prices hike is likely to have a significant impact on the overall cost of living for people in the country with increase in the transportation costs and the prices of other goods and services.

The decision will be taken on a working paper being submitted by the Pakistan State Oil (PSO) on October 15. Based on preliminary calculations, petrol prices could increase by Rs3.95 per liter, kerosene oil by Rs7.85 per liter, and light diesel oil (LDO) by Rs8.33 a liter.

The OGRA reviews proposed price adjustments and forwards the working paper to the government for final approval. Once the prime minister of Pakistan gives the green light, the Finance Ministry will officially announce the revised prices.

The fuel price increase in Pakistan will be in line with the upward trend in the global market.

Official sources said that the cost of major petroleum products, including petrol and HSD is likely to rise by around Rs5.50 and Rs13 per litre, respectively, starting October 16.

At present, petrol’s average price in the international market has risen to nearly $79 per barrel, up from about $76, while HSD has climbed from $80.5 to approximately $87.5 per barrel.

Despite these international price hikes, the import premium for both petrol and HSD remained stable at $8.7 and $5 per barrel, respectively, with the exchange rate remaining relatively consistent during this period.

On October 1, the government had slashed the price of petrol by Rs2.07 per litre for the next fortnight. As a result, the rates came down from Rs249.10 to Rs247.03 per litre.