Motorists in Pakistan may face a significant hike in fuel costs starting July 16, as global oil market trends push domestic prices higher. The anticipated increase comes ahead of the fortnightly price review conducted by the Oil and Gas Regulatory Authority (OGRA), following calculations submitted by the local oil industry.

Sources indicate that petrol prices could rise by Rs6.60 per litre, while high-speed diesel is expected to jump by Rs5.27 per litre. Prices of kerosene oil and light diesel oil are also projected to increase by Rs3.74 and Rs2.32 per litre, respectively.

The final decision on the new pricing will be made after approval from Prime Minister Shehbaz Sharif.

The looming hike is largely attributed to a recent spike in international oil prices. On Monday, global benchmarks continued their upward trajectory—Brent crude rose by 21 cents to $70.57 per barrel, while West Texas Intermediate (WTI) climbed 20 cents to $68.65, extending Friday’s strong gains of over 2%.

The rally in crude oil is driven by a combination of geopolitical tension and market fundamentals. Concerns over potential new U.S. sanctions on Russia are stoking fears of reduced global supply. Meanwhile, the International Energy Agency (IEA) recently reported that global oil demand remains strong, particularly during the summer months, with higher refinery activity to meet increased travel and energy needs.

Despite a gradual increase in Saudi Arabia’s oil output and lingering uncertainty surrounding U.S. trade tariffs, global supply tightness continues to support upward pressure on fuel prices.

If approved, the expected increase will place further strain on consumers already grappling with inflation and economic challenges, potentially affecting transportation costs and commodity prices across the country.