Petroleum Prices in Pakistan Set to Increase Up to Rs4.79 Per Litre Amid Ukraine-Russia Conflict

Petroleum product prices in Pakistan are expected to increase by up to Rs4.79 per litre starting September 1.

The rise in global oil prices—nearly 2 percent—comes after Ukraine’s drone attack on Russia’s key northwestern port of Primorsk. This attack forced the suspension of crude oil loadings at the vital western oil terminal.

According to sources, the projected price hikes in Pakistan are as follows:

• Petrol: up by Rs1.54 per litre
• High-Speed Diesel (HSD): up by Rs4.79 per litre
• Kerosene Oil: up by Rs3.06 per litre
• Light Diesel Oil (LDO): up by Rs3.68 per litre

The Oil and Gas Regulatory Authority (Ogra) is set to submit its final recommendations to the Petroleum Division by September 15. Following this, the Petroleum Division and Ministry of Finance will forward the pricing summary to Prime Minister Shehbaz Sharif for approval, factoring in applicable taxes and levies.

Earlier, on September 1, the Finance Division kept petrol prices unchanged but reduced the price of HSD by Rs3 per litre for the following fortnight. The current official prices stand at:

• HSD: Rs269.99 per litre
• Petrol: Rs264.61 per litre
• Kerosene Oil: Rs1.46 per litre
• LDO: Rs2.40 per litre

Impact of Ukraine’s Drone Attack on Primorsk Port

The drone strike on the Primorsk port marked the first such attack on this major Russian oil terminal, which has a loading capacity of about 1 million barrels per day (bpd). Primorsk is a critical export hub for Russian crude, including the Urals oil grade, and approximately 300,000 bpd of diesel.

Industry sources reported that two vessels caught fire following the drone attack. Ukraine’s Security Service (SBU) confirmed the overnight drone strike, which caused a fire and halted loading operations. It is unclear if loading has resumed.

Alexander Drozdenko, governor of the Primorsk region, confirmed a drone attack ignited a fire on one vessel and a pumping station but stated there was no suspension of operations at the time. He also confirmed the fire was extinguished and there was no risk of an oil spill. Over 30 drones were reportedly destroyed in the region during the incident.

The port’s operator, Transneft, and Russia’s Energy Ministry declined to comment on the attack.

Tankers Targeted in the Attack

Two Aframax oil tankers, Kusto and Cai Yun, were hit in the attack, according to industry sources.

• Kusto has a capacity of about 700,000 barrels and is owned and managed by Solstice Corp.
• Cai Yun is owned and managed by Acceronix Ltd.

Both tankers are registered in the Seychelles.

Broader Context of Russian Oil Exports

In recent months, Ukrainian drone attacks have targeted other Russian ports, including Ust-Luga and Novorossiisk in the Black Sea region. Ust-Luga port is currently operating at half capacity following a drone attack in August.

Meanwhile, former US President Donald Trump has expressed readiness to sanction Moscow, contingent on all NATO allies agreeing to halt Russian oil purchases and imposing sanctions. Trump also suggested considering tariffs of 50 to 100 percent on China to help end the conflict in Ukraine.

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