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ISLAMABAD: Following back-to-back relief in fuel prices, the caretaker government is likely to increase the prices of petrol and high speed diesel (HSD) in the next fortnightly review on January 31, media reported on Thursday.

The expected hike in fuel prices is due to a surge in international oil rates amid escalating tensions in the Middle East, industry officials said on Wednesday.

The government, which adjusts the prices of petroleum products every 15 days based on the recommendations of the Oil and Gas Regulatory Authority, is likely to raise the price of petrol and diesel by Rs7 per litre each on January 31, 2024, an official told .

The expected hike in the prices of petroleum products would come after domestic prices remained stable or witnessed a decrease since November 01, 2023.

“The situation is most likely to be different this time after petroleum prices saw some reduction in the last three months,” an oil sector official said as he pointed out that global prices of petroleum products went up in the last one week after a crisis in the Middle East, especially the Houthi attacks on ships in the Red Sea, triggering the strike from US and UK against them in Yemen.

They said that the expected jump in the domestic prices is based on the global prices of HSD, petrol and crude oil, which have fluctuated upward by four to five dollars in the last one week.

The international price of petrol jumped to $89 per barrel from $83 per barrel in one week whereas the price of HSD surged to $97-98 per barrel from $ 93 per barrel in a week.

The international price of crude oil increased to $80 per barrel from $76 per barrel.

Officials said that the $4 to $5 per barrel increase in the global prices has been translated to push the prices up in the market.