On August 1, 2022, the Federal Government intends to raise the cost of gasoline by Rs. 10–17 per litre.
Despite the stability of global gasoline costs, sources state that a rise is anticipated because of the Pakistani rupee’s fast decline against the dollar.
According to sources, the predicted rise for gasoline is Rs. 10 per litre, whilst the expected increase for diesel is Rs. 16–17 per litre. Additionally, the price of gasoline may rise by Rs. 15 for regular gasoline and Rs. 23 for diesel if the government decides to implement the Rs. 5 petroleum levy (PL).
It is important to note that the sum shown above does not reflect the rise in dealers’ margins (DMs) that the government imposed. With the consent of the Economic Coordination Committee, the government has agreed to hike DMs by Rs. 2.10 per litre for gasoline and Rs. 2.87 per litre for diesel. According to reports, after this hike, the cost of gasoline might climb by Rs. 17.10 per litre, while the cost of diesel could increase by Rs. 25.87 per litre.
However, industry insiders claim that because the Pakistani rupee is consistently declining and was trading at Rs. 239 to the dollar, the final rate will be determined in accordance with the exchange rate.
Despite repeated guarantees of relief from the Prime Minister and Federal Ministers, sources claim that the people may not be able to obtain any respite despite stable worldwide gasoline costs. This is because of the currency rate.
To read our blog on “Following price increases, fewer people are buying petrol and diesel,” click here.