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The world is bracing for a potential energy shock as escalating tensions in the Middle East have sent global oil prices soaring.
In Pakistan, consumers face the ominous prospect of petrol and diesel prices surging upwards in the coming weeks, with sources suggesting that petrol could see an increase of Rs3.55 per litre, and diesel by Rs0.82 per litre.
Upward trend in petrol and diesel prices
International oil markets have witnessed a significant uptick, with petrol and diesel prices surging by $3.14 and $1.14 per barrel, respectively.
The situation is placing immense pressure on Pakistan's energy sector, prompting concerns about the nation's fuel affordability.
Currency fluctuations
Interestingly, amid the uncertainty, the Pakistani Rupee (PKR) has made a slight recovery, gaining approximately 4 rupees or 1.42% against the USD compared to the previous fortnight's weighted average rate of PKR 282.37 per USD.
This currency shift could help alleviate some of the impact of rising oil prices but is unlikely to entirely shield consumers from the impending price hikes.
Awaiting next update
However, the future trajectory of petrol and diesel prices remains uncertain, and much will depend on global market dynamics and exchange rate fluctuations. With a week left until the next pricing update on October 31, 2023, the government's announcement will be eagerly awaited by both consumers and businesses alike.
Recent price trends
Recent market data highlights the substantial increase in oil prices:
Brent Crude Oil prices have surged by 4.26%, reaching $91.18 per barrel.
WTI (West Texas Intermediate) prices increased by 2.34%, standing at $87.38 per barrel.
Arab Light Crude Oil saw a similar rise of 4.38%, with a barrel priced at $94.63.
The USDPKR exchange rate also exhibited fluctuations, falling by 1.42% from 282.37 to 278.35, providing a glimmer of hope for consumers, though the situation remains highly unpredictable.
