Starting August 16, 2023, Pakistan expects a significant increase in petroleum product prices, with the caretaker government announcing new prices on August 15. This surge is driven by higher global market prices, particularly for crude oil. The Daily Jang reports potential rises of Rs15 per liter for petrol and Rs20 per liter for diesel. These increases are linked to recent hikes in crude oil prices on the global stage.
Global Market Dynamics
Petroleum product prices rise due to higher crude oil costs worldwide. Crude oil prices have risen $5 per barrel, from $86 to $91 per barrel, resulting in increased global petroleum product prices. An additional $2 per barrel charge on crude oil adds to costs. Diesel and petrol prices globally have risen from $97 per barrel to $102 per barrel, amplifying the impact.
Continued global trends could adversely affect Pakistan. If projected prices hold, petrol may rise Rs15 per liter and diesel Rs20 per liter. These hikes could impact various sectors, including transportation, logistics, and inflation.
Past Government Actions
The outgoing government previously raised petrol and diesel prices by Rs19 per liter each to meet International Monetary Fund (IMF) requirements. Successive governments face pressure to manage fluctuations and fulfill financial commitments.
Expected petrol and diesel price hikes in Pakistan result from global crude oil trends. Such increases could impact the economy and daily life. As the caretaker government reveals new prices on August 15, stakeholders will closely monitor the situation and consider measures to mitigate the impact.