Pakistan is on the brink of another major economic setback amid a backdrop of persistent difficulties, including increasing inflation, currency depreciation versus the dollar, exorbitant power bills, and rising prices of necessities
. The country is prepared for a significant hike in the cost of gasoline, which is anticipated to rise by up to Rs16 per liter beginning on September 16.
Petrol prices have risen above the historic Rs300 per liter level for the first time in the nation’s history after the caretaker administration approved price increases for both gasoline and diesel.
The ex-depot price is expected to climb from the current Rs305.36 to Rs321.35 a liter, adding to the burden on citizens
Estimates from the oil industry predict that the price of petrol will increase by Rs 15.99 per liter, high-speed diesel (HSD) by Rs 13.66 per liter, kerosene oil by Rs 8.79 per liter, and light diesel oil (LDO) by Rs 4.45 per liter during the upcoming fortnight of September.
These calculations are based on the current government levies on petroleum products, including the petroleum levy (PL), which is by IMF requirements and is levied at a rate of Rs. 55 per liter on petrol and Rs. 50 per liter on high-speed diesel.
As part of its pledge to the IMF, the caretaker administration may also think about raising the petroleum levy rate to Rs. 60 per liter for diesel. High-Octane Blending Component (HOBC) is subject to a Rs60 per liter petroleum charge that is paid to the government.
The government collected a sizable Rs75 billion in petroleum levy fees from oil consumers in August, and September is expected to bring in similar sums.
The price of HSD might rise to Rs325.50 per liter from Rs311.84 per liter if the increase is approved.
Diesel is widely used in the transportation and agricultural sectors, thus any future price hikes will have a significant inflationary effect.
In the countryside, particularly in the country’s north, where LPG is not readily available for cooking, kerosene is utilized for cooking. In these places, the Pakistan Army is also its principal user.
LDO, which is used in industries, may increase in price from Rs210.13 to Rs218.92 a liter.
The impact of the rupee’s 4.45 percent decline against the dollar was also seen in the price of crude oil.
The Pakistan State Oil (PSO) exchange rate adjustment on petrol and HSD at Rs 3 per liter may be permitted by the government.
As global commodity prices continue to rise, there will be another wave of petroleum rises for the second half of September.
Benchmark Brent futures traded at about $92.14 per barrel. Last week, it was revealed that Saudi Arabia and Russia would continue their voluntary supply limits of 1.3 million barrels per day until the end of the year.
