The news has spread negative sentiments among the consumers in the country
Many reports have been swirling around that the price of petroleum products in Pakistan are expected to experience a surge in the near future. Yesterday, officials of the petroleum and natural resources ministry announced that the price of the petroleum products in the country could hike up to 7.5% in December because of the increase in crude oil prices across the globe.
The news has spread negative sentiments among customers as the inflation in the country is also increasing at a rapid pace. In addition, Oil and Gas Regulatory Authority (OGRA) sent a summary to the ministry on Tuesday and recommended an upward revision in prices of petroleum products except kerosene. It is worth noting that the prices of all petroleum products are monitored and set by OGRA only.
Interestingly enough, the government can preserve the impact on the price hike of petroleum products by adjusting the tax rates on them. Even though global prices plunged by 50%, consumers in the country were denied full relief in previous months because of the hefty taxes, as a loss avoidance strategy by the government.
Several reports suggest that the prices to be revised as follows:
High Octane (mainly used in luxury vehicles) expected to increase in price by PKR 6.82 per liter (new price 79.54 per liter). Also, High Speed Diesel is also expected to increase by PKR 5.42 per liter (new price 77.94 per liter). If the government decides to proceed with a price increase across the board, the price of kerosene oil is speculated to go from PKR 43.25 to PKR 46.06 per liter.
It is worth noting that OGRA has not officially announced the hike in price yet. We hope to update this site with more news as we receive it.