Federal government likely to raise petroleum prices for the second fortnight of January 2025

The federal government is expected to increase petroleum prices for the second fortnight of January 2025, with an increase of Rs3.5 per litre in both petrol and diesel prices.

Sources revealed that the Oil and Gas Regulatory Authority (OGRA) has sent a summary to the Ministry of Finance recommending the revision of petroleum prices. The new rates are anticipated to come into effect from January 16, 2025.

The proposed price hike is attributed to the rising global oil prices, particularly in the wake of US sanctions on Russian oil supplies, which have led to market volatility.

In international markets, oil prices saw a modest rise on Wednesday, recovering some of the previous day’s losses. The focus of market activity has shifted to potential supply disruptions caused by sanctions on Russian oil tankers, although gains remain capped as the market awaits more clarity on the long-term impact.

Brent crude futures saw a 51-cent increase, or 0.6%, reaching $80.43 a barrel by 0735 GMT, further influencing the price hike expected domestically.