Elections are coming in the neighboring country Pakistan. On one hand, there is a war like situation with Iran and amid skyrocketing inflation, the interim government of Pakistan has increased the price of petrol drastically. In such a situation, the people of Pakistan are in a trap like situation. In Pakistan, the government there has increased the price of petrol by 13.55 Pakistani rupees per liter. In such a situation, inflation in general and other categories has been given a big blow. The government has increased the price of petrol by Pakistani rupees 13.55 per liter.
High-speed diesel (HSD) price increased by PKR 2.75 to PKR 278.96 per litre. The notification does not mention any change in the prices of light-diesel oil (LDO) and kerosene oil. The increase in petrol prices is higher than previously expected. Petrol and HSD prices are expected to rise by 5-9 PKR per liter in the next fortnight due to higher international prices and import premium, neutralizing the impact of marginal exchange rate gains.
According to information received from Pakistan, the prices of both the major petroleum products have increased in the international market in the last fortnight and despite the strengthening of the rupee against the US dollar, Pakistan State Oil (PSO) has also had to pay the price. Had to pay higher import premium.
As a result, based on final exchange rate calculations, HSD prices were expected to increase by PKR 4-6 per liter and petrol prices by PKR 6.5 to 9 per liter. However, kerosene and LDO prices were expected to remain unchanged
Petrol prices have fallen more than US$3 per barrel in the past two weeks, from US$83 to US$86.5, while HSD has fallen nearly US$2 to about US$95.6, officials said. 97.5 US dollars.
On the other hand, the Pakistani rupee depreciated from PKR 281 to around PKR 280 against the dollar in the first half of January. The premium paid by PSO to secure product cargo has increased by US$2 per barrel on both products. For HSD it increased from US$4.2 to US$6.5 per barrel and from US$7.5 to US$9.5 per barrel.
The government has already achieved petroleum levy of PKR 60 per liter on both petrol and HSD – the maximum permissible limit under the law. The government had set a budget target of collecting PKR 869 billion as petroleum levy on petroleum products during the current financial year as part of its commitments with the International Monetary Fund, but the collection is expected to be PKR 920 billion by the end of June. More Dawn News has given this information. Petroleum and electricity prices have been the main drivers of a higher CPI-based inflation rate of 29.7 percent in December 2023.