By the time of the subsequent bimonthly review, Pakistan may increase petroleum prices by Rs. 12 to Rs. 22 per liter due to rising global commodity prices.
Tahir Abbas, head of research at Arif Habib Limited (AHL), recently told a local newspaper that if oil prices continue to rise, the government may increase fuel prices beyond Rs. 12–22 per liter.
A few days ago, the government increased the cost of gasoline and oil by around Rs. 20 per liter, bringing prices to Rs. 273. The government was compelled by the terms of the International Monetary Fund (IMF) loan to pass on increased global commodities prices to local consumers.
For the second half of August, Abbas proposed raising the price of diesel by 20–22 rupees per liter and the price of petrol by 12–13 rupees per liter.
In the last two weeks, the cost of refined goods has increased by $13 per barrel to reach $111 per barrel, while the cost of gasoline has increased by $7 per barrel to reach $97 per barrel.
The August inflation reading may be impacted by potential price increases. If inflation is higher than anticipated, the central bank may increase its policy rate in September.
An experienced businessman from the Federal of Pakistan Chambers of Commerce and Industry (FPCCI), Khalid Tawab, has advised the government to hold off on raising the price of gasoline in light of these worries.
To help the general people and enterprises, he suggests decreasing the petroleum development levy (PDL), which is now charged at Rs. 50 per liter.
To read our blog on “Govt. increase massively in petrol prices by Rs. 19.95/liter,” click here.
