As the world grapples with the ever-fluctuating dynamics of the global oil market, Pakistan finds itself on the precipice of yet another petrol price hike. With the country already reeling from the historic high of Rs. 331.38 per litre, the anticipation of a new hike has cast a looming shadow over the nation. The impact of this impending increase is expected to cascade into a new era of severe repercussions for the already burdened masses.

The price of petrol in Pakistan is intricately linked to global oil prices, and as such, it remains susceptible to the international market’s ebbs and flows. Over the years, Pakistan has faced numerous challenges when it comes to managing its fuel prices, primarily due to its heavy reliance on oil imports and the volatility in global oil markets.

Consequently, any significant shift in international oil prices tends to have a direct and immediate impact on Pakistan’s domestic petrol rates.

Global Price Hike – An Anticipation

As per the international news agency Reuters, oil prices surged to their highest levels in 10 months, driven by concerns about the extended production cuts by Saudi Arabia and Russia, which were further exacerbated by the subdued output from the US shale industry.

Reports further informed that oil prices in international markets hit a peak of $95.96 a barrel – a new high since November’22. Moreover, there is a growing belief that the rising crude oil prices may be nearing their highest point.

According to analysts from National Australia Bank, the surge in oil prices has pushed the market into an overbought condition, making it susceptible to a potential correction.

Saudi Arabia’s energy minister, Prince Abdulaziz bin Salman, has voiced his support for the supply cuts implemented by OPEC+ and emphasized the importance of maintaining light regulation in international energy markets to control volatility.

However, he also expressed caution about several factors that could introduce uncertainty into the market. These include concerns about Chinese demand, the pace of European economic growth, and measures undertaken by central banks to address inflation.