ISLAMABAD: Despite decline of crude oil prices in the international market and rupee’s stability against dollar, the government increased petroleum product prices up to Rs10.92 per litre for the next fortnight. This is the first increase after the IMF on Monday revived the stalled programme with Pakistan by approving $1.16 billion.
This is the second fortnightly increase in a row in August. Earlier, an increase was made on Aug 15 by jacking up POL prices, apparently to meet the strict conditions of the Fund to end the subsidies on petroleum products.
According to Finance Division’s handout, prices of petrol has been increased by Rs2.07/litre, diesel R2.99/litre, Kerosene Rs10.92/litre and light diesel oil (LDO) increased by Rs9.79/litre.
After the increase, the ex-depot price of petrol will be Rs235.98 per litre, high-speed diesel price would be Rs247.43 per litre, light diesel oil (LDO) Rs201.54/litre, and kerosene Rs210.32/litre. The new prices would be effective from Thursday (today) till mid-September.
Despite a drop in the crude price in the international market on demand fears, Pakistan increased the prices to meet the IMF demand and achieve the set target of revenue from the petroleum sector.
In the last three days, the Brent price went down from $103.28/barrel on Aug 30 to around $95/barrel till midnight of Aug 31. Earlier, on March 7, it hit $139.13 a barrel. The all-time of $147.50 was last seen in July 2008.
Over the last few days, the Pakistani rupee is also stable against the US dollar, and the public was expecting some relief in POL [petrol, oil, lubricants] prices, but the Fund’s conditionalities dampened the expectations.
The Finance Division, in a statement, said, “In the fortnightly review, of petroleum products prices, the government has considered the recommendation to make a partial increase in the prices of petroleum products in line with the changes in the international oil prices and fluctuation in the exchange rate.” Finance Division further said, it is pertinent to mention that the petroleum levy has been kept at a minimum in order to provide relief to the consumers.
The Pak rupee has gained since its drop to a historic low of Rs233.94 against the dollar on July 28, 2022. Since then, it has continuously strengthened its value. The incumbent government start increasing POL prices on May 26, 2022 when the benchmark Brent was at $112 per barrel.
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