Possible Rise in Petrol Prices Expected After August 15th

03 Aug 2023

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Possible Rise in Petrol Prices Expected After August 15th

As global commodity prices continue to surge, the government of Pakistan is considering raising petroleum prices by Rs. 12 to Rs. 22 per liter during the upcoming bi-monthly review. The recent discussion with The Tribune revealed insights from Tahir Abbas, the Head of Research at Arif Habib Limited (AHL).

IMF Loan Conditions Lead to Price Increase

In a bid to comply with International Monetary Fund (IMF) loan conditions, the government recently increased petrol and gasoline prices by approximately Rs. 20 per liter, elevating rates to Rs. 273. The mounting pressure of rising international commodity prices prompted this decision, potentially affecting August's inflation reading.

Concerns and Advocacy from Business Leaders

Tahir Abbas proposed 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. The escalating refined product prices, soaring by $13 per barrel to $111, and petrol prices climbing by $7 per barrel to $97 have triggered these suggestions.

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. He believes that reducing the petroleum development levy (PDL), currently at Rs. 50 per liter, would provide much-needed relief to the public and businesses.

Petrol Fuel Prices in Pakistan Fuel Prices May Increase Fuel Cost in Pakistan Oil Prices 2023

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