For the past 2-3 weeks, international petroleum prices have been rising. The government, on the other hand, has kept the prices unchanged. Last time, locals were given relief by lowering the prices of petroleum products. Let’s take a look at the petrol price in Pakistan and other fuel prices that will be in effect until January 15, 2023.
Petrol Price in Pakistan Today
|Product||Old Price (Rs.)||New Price (Rs.)||Difference (Rs.)|
|High Speed Diesel (HSD)||227.80||227.80||0|
|Kerosene Oil (SKO)||171.83||171.83||0|
Petrol Price in Pakistan: Analysis
In the international market, OPEC petroleum prices jumped to $81.14 per barrel last week. On the other hand, the Pakistani rupee is losing value against the US dollar. Nonetheless, the government has decided to maintain current petroleum prices. It is worth noting that the petroleum levy has already reached the limit agreed upon with the IMF. As a result, the government was not forced to raise prices this time. However, if the PKR continues to lose value and global petroleum prices continue to rise, we may see a price increase after 15 days.
In Pakistan, there is still some confusion about who determines the prices of these products. Petroleum prices in Pakistan will be deregulated on November 1, 2022. This means that private businesses/companies, rather than the government, will now determine Pakistan’s new petroleum prices. The government no longer wants to take flak from the people, so it has decided to let private companies determine how much Pakistanis will pay per litre of fuel. Although the federal finance minister is still the one who appears on television to announce new petroleum prices.
Petroleum Development Levy in Pakistan
Although the government has reduced the price of petroleum products in Pakistan, it has increased the PDL rate on them (per litre). The following is the most recent PDL in Pakistan:
|Product||Old Rate (Rs.)||New Rate (Rs.)||Difference (Rs.)|
|High Speed Diesel||25||30||+5.00|
Stay tuned for updated petroleum development levy.
What Can We Expect in the Next Few Days and Months?
In order to restart the stalled IMF loan programme, the government agreed to impose a Rs.5 per litre levy on all petroleum products every month until it reached Rs.50 per litre. This alone had prevented the government in Pakistan from lowering petroleum prices.
Now that the promise has been fulfilled, we believe that petroleum prices in Pakistan will fall only if:
- The Rupee strengthens against the US Dollar
- The per barrel price of petrol decreases in the international market
In short, there is a slim chance that petroleum prices in Pakistan will fall anytime soon.
Sasta Petrol Sasta Diesel Scheme
This government, like its predecessor, has announced the Sasta Petrol Sasta Diesel scheme to protect low and middle-income motorists from price inflation. Motorists with a monthly household income of less than Rs.40,000 would be eligible.
Beneficiaries of the Benazir Income Support Programme (BISP) will be automatically enrolled in this scheme. Others can apply starting June 1 by texting their CNIC numbers to 786. The CNIC of a woman head of household (married or widow) must be registered in order to receive Rs.2,000. This is in addition to the services provided by BISP.
It is worth noting that the previous government attempted to provide this relief to motorists through the Ehsaas Program. However, it never took off. Let us see how this scheme performs.
We update this page fortnightly. So, stay tuned.