Petrol Prices May Climb Again After August 15

As global commodity prices rise, Pakistan may raise petroleum prices by Rs. 12 to Rs. 22 per liter by the next bi-monthly review.

In his recent discussion with The Express Tribune, the Head of Research at Arif Habib Limited (AHL) Tahir Abbas said that if international oil costs keep rising, the government may raise rates beyond Rs. 12-22 per liter.

The government hiked petrol and gasoline prices by about Rs. 20 per liter a few days ago, pushing rates to Rs. 273. The International Monetary Fund (IMF) loan conditions forced the government to pass on rising international commodity prices to local consumers.

Abbas suggested a diesel price hike of Rs. 20-22 per liter and a petrol price increase of Rs. 12-13 per liter for the second half of August. Over the past two weeks, refined product prices have risen by $13 per barrel to $111 per barrel, and petrol prices have climbed by $7 per barrel to $97 per barrel.

Potential price rises may affect August’s inflation reading. In September, the central bank may raise its policy rate if inflation exceeds expectations.

Khalid Tawab, a seasoned business leader from the Federal of Pakistan Chambers of Commerce and Industry (FPCCI), has urged the government to reconsider raising petroleum prices amid these concerns.

He advises lowering the petroleum development levy (PDL), which currently stands at Rs. 50 per liter, to provide relief to the public and businesses.

Source: Pro Pakistani