Fuel price hike again on August 18 after last week’s rollback

The federal government has extended the latest reduction in petroleum prices by lowering the cost of kerosene oil, providing additional relief to consumers who rely on the fuel for household and commercial use, particularly in remote and off-grid areas. According to a notification issued by the Oil and Gas Regulatory Authority (OGRA), the price of kerosene has been reduced by Rs3.58 per litre. Following the latest revision, the new retail price of kerosene has been fixed at Rs301.64 per litre, down from the previous rate of Rs305.22 per litre. The reduction comes as part of the government’s broader revision of petroleum product prices aimed at passing on the benefit of changes in international oil markets to consumers. Earlier, the Petroleum Division announced fresh prices for major petroleum products effective from August 4, confirming a decrease in the prices of both petrol and high-speed diesel. Under the revised rates, petrol has become cheaper by Rs4.80 per litre, bringing its new price down to Rs331.95 per litre. Likewise, the price of high-speed diesel (HSD) has been reduced by Rs2.45 per litre, setting the new rate at Rs389.93 per litre. The latest cuts are expected to provide modest relief to motorists, transporters, and businesses facing high operating costs, while the reduction in kerosene prices is likely to benefit households in regions where the fuel remains a primary source for cooking, heating, and lighting.

Gold prices advanced nearly 1% on Wednesday as investors reduced expectations of further monetary tightening by the US Federal Reserve and turned their attention to upcoming inflation figures that could provide fresh clues about the central bank’s next policy move. Spot gold rose 0.9% to $4,406.34 per ounce by 0330 GMT, while US gold futures for December delivery gained 0.6% to $4,466.70. The precious metal remained supported after recording strong gains in recent sessions, although prices faced technical resistance around the 100-day moving average. Gold had climbed to a 10-week high on Tuesday before retreating from the key technical level near $4,387 per ounce, marking its second decline this month. Market analysts said changing expectations for US interest rates were providing an important boost to bullion. “The primary driver for gold is the reduction in pricing of rate hikes by the Fed,” said Kelvin Wong, senior market analyst at OANDA. He added that gold had also benefited from a technical breakout above the $4,200 level late last week, which helped strengthen upward momentum and encouraged further buying. Weaker jobs data shifts Fed expectations Gold’s recent rally has been supported by signs of cooling in the US labour market. Bullion recorded its strongest weekly performance since January on Friday after employment data came in weaker than expected, prompting traders to reassess expectations for further interest-rate increases. According to the CME FedWatch Tool, markets were pricing in roughly a 50% probability of a rate hike in September, compared with about 60% before the release of the jobs report. Investors are now awaiting the latest US Consumer Price Index figures, due later on Wednesday. The inflation report could have a significant impact on expectations for the Federal Reserve’s upcoming decisions. A softer-than-expected inflation reading could reinforce expectations for a less aggressive monetary policy stance, potentially providing additional support to gold. Conversely, stronger inflation could revive concerns about higher interest rates and put pressure on non-yielding assets. Gold typically benefits from lower interest rates because bullion does not generate interest income. When borrowing costs and bond yields decline, the opportunity cost of holding gold tends to fall, making the metal more attractive to investors. However, Chicago Federal Reserve President Austan Goolsbee has cautioned that inflation remains a key concern. He said he was more worried about inflation remaining excessively high than about weakness in the labour market, highlighting the challenge facing policymakers as they balance price stability against employment conditions. Geopolitical tensions add to safe-haven demand Geopolitical developments in the Middle East also remained an important factor for financial markets. Oil prices extended their gains after the United States and Yemen’s Iran-aligned Houthi movement reported separate attacks involving shipping on Tuesday. At the same time, hopes for an agreement to end the conflict involving Iran appeared to weaken. Iran has indicated that the Strait of Hormuz would remain closed unless Washington agrees to its conditions, raising concerns over the potential impact on global energy supplies. The Strait of Hormuz is a critical route for international oil shipments, and any prolonged disruption could increase energy prices and intensify inflationary pressures worldwide. Such uncertainty can also encourage demand for traditional safe-haven assets such as gold. Silver, platinum and palladium also advance Other precious metals followed gold higher during Wednesday’s session. Spot silver gained 1.2% to $65.46 per ounce. The metal remained below Tuesday’s peak, which marked its highest level since June 22. Platinum also strengthened, rising 0.6% to $1,754.10 per ounce, while palladium advanced 0.8% to $1,370.86.