Pakistan is poised to witness a notable milestone as the cost of petrol prepares to breach the three-hundred mark. This impending increase comes as the interim caretaker administration aligns its actions with the fiscal targets delineated by the IMF.
Petrol Price in Pakistan
Here’s the current petrol price in Pakistan as of August 31, 2023.
| Petroleum Product | Price (Rs) |
|---|---|
| Petrol | 290.45 |
| High-Speed Diesel | 293.40 |
Expected Petrol Price in Pakistan
Oil sector projections indicate that the cost of petrol could surge by over Rs10 per liter, pushing the present price of Rs290.45 to Rs300.45 per liter—an increase of 3.5 percent.
Similarly, high-speed diesel (HSD) might experience a substantial Rs20 per liter hike, elevating the current Rs293.40 to Rs313.40 per liter, marking a 6.9 percent rise.
| Petroleum Product | Current Price (Rs) | Projected Increase (Rs) | Projected Price (Rs) | Percentage Increase |
|---|---|---|---|---|
| Petrol | 290.45 | > 10 | > 300.45 | ~ 3.5% |
| High-Speed Diesel | 293.40 | > 20 | > 313.40 | ~ 6.9% |
Anticipated price hikes are also expected for less-consumed petroleum products. KERO might rise by Rs14 per liter, reaching Rs231.15 per liter from Rs217.15. Likewise, LDO prices may increase by Rs10 per liter, reaching Rs208.80 from the existing Rs199.79.
The fuel cost increase stems from the Pakistani rupee’s devaluation against the US dollar, resulting in an average loss of Rs9.93 over 15 days. The rupee value declined from Rs288.25 to Rs298.18.
These calculations factor in a petroleum levy (PL) of Rs55 per liter on petrol and Rs50 per liter on HSD. This follows two successive reviews that have already seen petrol’s price rise by Rs37.50 per liter and HSD becomes Rs40 more expensive.
These impending price increases present substantial challenges to Pakistan’s struggling populace and businesses. The situation’s impact on the economy emphasizes the need for proactive measures to mitigate public effects.
