As per media reports, Rs.15 per litre petrol price hike is in the pipeline for Pakistan during the second half of September 2023. The ongoing surge in global commodity prices has raised concerns among inflation-weary Pakistanis, who have already been grappling with rising living costs.
Media reports, citing well-informed sources, have indicated that Pakistan’s interim government may announce this price hike in response to the continued escalation of global oil prices. These prices have now reached a 10-month high, driven not only by supply constraints but also by the depreciation of the local currency.
International benchmark Brent futures have hovered around $92.14 per barrel, while US West Texas Intermediate crude has experienced slight gains, reaching $88.98 per barrel. This surge in oil rates has pushed prices to levels not seen since November 2022.
As of now, the government has not officially announced any updates regarding the expected price revision. The decision on whether to implement a price hike will be finalized in upcoming meetings.
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Currently, the rate of petrol stands at Rs305.36 per litre, while the price of high-speed diesel is Rs311.84 following the last revision. In recent times, the federal government has been adjusting fuel prices approximately every 15 days.
If the proposed price hike is approved by the government, the new price of petrol could exceed Rs320 per litre. This move, if enacted, would further exacerbate the burden on consumers in Pakistan, where living costs have been steadily rising. It’s worth noting that the government imposes a record petroleum levy on both petrol and high-speed diesel.
The potential increase in fuel prices is likely to contribute to the already soaring inflation rates in Pakistan. The country has been grappling with a persistent inflation crisis, making it challenging for citizens to afford essential commodities, including food and other basic necessities.
As Pakistan watches global oil prices closely, its citizens anxiously await the government’s decision, hoping for relief from the relentless upward trajectory of living costs.