The petrol prices are likely to increase by up to 20 liters from the current price in the upcoming review schedule by government officials. The increase in prices of petrol is based on international calculations on a free-on-board basis. This price might increase due to the rise in the exchange rate. The petrol price might increase further if the government adjusts RS 20 per liter on account of the exchange rate, which could take up to the price of RS 40 per liter.
The diesel price doesn’t seem to increase on FOB without exchange rate adjustment, but if the exchange rate adjusted, the diesel price may rise in the upcoming review. The government increased the prices of petroleum by about 35 per liter while no GST has imposed yet. As the global price of petrol has decreased yet there seems no significant change in the prices of petrol in Pakistan. It seems not beneficial for the local consumer due to the high exchange rate.
The government had adjusted RS 14 per liter on diesel prices on account of the exchange rate in the previous review. It seems the government will not provide any relief to the consumer due to the high dollar rate. Several cities of Punjab are facing a shortage of petrol. The situation has blamed on petroleum dealers involved in storing up petrol to earn a profit when prices increase.
The shortage of petrol affect Punjab, and several businesses and transportation services has an impact by it too.
The recent price adjustment was in January by the federal government. The price of petrol is RS 249.80 per liter, high-speed diesel is RS 262.80 per liter, and kerosene oil is RS 189.83 per liter. The government has increased prices of petroleum by RS35 per liter each and raised the rate of kerosene oil and light diesel oil by RS 18 per liter each on January 29, 2023.
Aside from the low import of oil and gasoline, dealers are also involve in stockpiling gasoline in preparation for the price increase in February. The government has imposed restrictions on LCs due to which their shortage of items in the city which has increased the prices of products. Some petrol owners are involve in storing the petrol the government will charge a fine to whoever involved in this. The government should remove restrictions from LCs which might lower the prices of items.
