As the federal government prepares to announce the revision in petrol prices, market predictions suggest that Pakistan may witness another rise in petroleum prices in the coming fortnight. Global oil market dynamics and domestic tax policies are likely to influence this adjustment.
Predicted Price Hike
- Petrol: Expected to increase by Rs. 5-6 per litre, bringing the price to Rs. 258.66 per litre.
- Diesel: Likely to rise by Rs. 2-2.50 per litre, reaching Rs. 260.84 per litre.
- Kerosene: Anticipated to increase by Rs. 4 per litre, setting the price at Rs. 165.66 per litre.
These predictions come on the heels of modest price increases of Rs. 0.56 for petrol and Rs. 2.96 for diesel announced on December 31.
Global Oil Market Impact
The anticipated hike is tied to rising global oil prices. Brent crude prices surged by $1-2 per barrel recently, following US sanctions on Russian oil exports. This has driven up ex-refinery costs for Pakistan, contributing to the predicted price increases.
Current Petrol Prices in Pakistan
Currently, fuel prices are:
- Petrol: Rs. 252.66 per litre
- Diesel: Rs. 258.34 per litre
- Kerosene: Rs. 161.66 per litre
Taxes and levies significantly influence these prices, with Rs. 76 per litre attributed to the petroleum development levy (Rs. 60) and customs duty (Rs. 16). Additionally, oil companies and dealers add Rs. 17 per litre in distribution and sale margins.
Economic Implications
The ripple effects of rising fuel prices are far-reaching:
- Petrol: Impacts household budgets, especially for middle and lower-income groups, due to its widespread use in personal vehicles and two-wheelers.
- Diesel: Essential for heavy transport, agriculture, and railways, diesel price hikes increase transportation costs, leading to higher prices for essentials such as vegetables and other goods.
The anticipated petrol price hike reflects the interplay between global market trends and domestic tax policies. With fuel being a critical component of Pakistan’s economy, the increase will likely affect inflation and everyday expenses for citizens, particularly those in vulnerable income groups. Planning and policy interventions will be crucial to mitigate its impact on the population.
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