Due to a significant depreciation in the local currency, it is possible that petrol prices in Pakistan will increase starting from March 16, 2023. The announcement of the petroleum prices for the next fortnight (March 16-31) is scheduled to make on March 15, 2023.
There is an increased probability of a further hike in petroleum prices during the next two weeks, as the continuous depreciation of the rupee is persisting.
At present, the government is levying a rate of Rs50 per litre on petrol and Rs45 per litre on HSD without any imposition of GST.
Assuming a petrol price of Rs50 per liter and no GST, the price of petrol will rise by Rs4 per liter, from Rs267 to Rs271 per liter. Similarly, the price of HSD expected to increase by Rs5 per liter, from Rs280 to Rs285 per liter.
Based on a comparison of fuel prices between the global market and the domestic market, it can conclude that the local prices should be lower, thereby providing relief to the people of the country.
The government’s misguided policies aimed at securing a successful IMF deal had disastrous consequences for the country. The deal led to a significant devaluation of the local currency and a substantial increase in energy prices, resulting in a miserable life for the people.
PSO requested an exchange rate modification of Rs5 per litre on petrol and Rs11 on HSD, from March 16-31. This request comes as a result of the US dollar strengthening against the Pakistan rupee. Rupee will rise by Rs15.97 in the past 15 days, from Rs262.14 to Rs278.11.
There is a possibility of an increase in the price of kerosene oil (KERO) by Rs11 per litre. It can rise from Rs187.73 to Rs199.47, while light diesel oil (LDO) may witness a price hike of Rs2.28 per litre, leading to a rise from Rs262.14 to Rs278.11 per litre.
