The prices of petroleum products are set to witness a significant increase due to the combined impact of currency devaluation and escalating international oil prices. The Pakistani Rupee has depreciated by Rs. 4.5 against the US dollar in the first half of the current month, moving from Rs. 299 to Rs. 304 before dropping below Rs. 300.
This depreciation, coupled with the rise in benchmark international Brent prices from $88 to over $92 per barrel within the first week of September, has offset any potential gains from the exchange rate. Consequently, consumers are bracing for a hike in petrol prices in the coming days.
The government has also decided to pass on the 88 paisas per liter increase in selling margins for petroleum dealers and marketing corporations, as approved by the Economic Coordination Committee (ECC) last week, to the consumers. This move is expected to further inflate the prices of petroleum products.
According to sources, the import parity price for petrol, diesel, and kerosene has surged by Rs. 13, Rs. 14, and Rs. 10 per liter respectively since the start of September. As a result, the sale prices of these products are projected to rise by Rs. 13, Rs. 16, and over Rs. 10 per liter respectively, as per Pakistan State Oil (PSO) product imports. Jet fuel prices are also set to increase by Rs. 10 per liter.
Furthermore, petrol and diesel prices are anticipated to exceed Rs. 320 and Rs. 325 per liter respectively, while the price of kerosene is expected to surpass Rs. 240 per liter. This imminent surge in fuel prices is likely to trigger inflation across various industries in Pakistan.
As the nation prepares for this impending economic challenge, it is crucial to remember that responsible resource allocation and policies that benefit all citizens are key to navigating these testing times.
