Pakistan’s government is about to reveal new petroleum prices for the second half of April 2023 on Saturday, with the new prices set to come into effect on April 16, 2023.
Analysts are predicting that domestic prices may increase, due to the decline in the value of the Pakistani rupee against the US dollar and an increase in international oil prices over the past few weeks.
As Pakistan is a net importer of petroleum products to meet its domestic demand, any revision in exchange rates and an uptick in international oil prices can affect domestic prices.
Despite a decline in Pakistan’s petroleum import bill, which fell to $11.88 billion during the first eight months (July-February) of fiscal year 2022/2023, down 8.28% compared to the corresponding months of the previous fiscal year, the significant depreciation of the Pakistani rupee by 23% resulted in an import bill increase in rupee terms.
Previously, the government announced the prices of petrol and high-speed diesel (HSD) and kept unchanged at Rs. 272 per liter and Rs. 293 per liter, respectively, for the fortnight starting from April 1, 2023. However, the prices of kerosene oil and light diesel oil have been reduced by Rs. 10 each to Rs. 180.29 and Rs. 174.68, respectively.
Minister of State for Petroleum Musadik Malik recently stated that the government is working on a scheme to provide petroleum products at subsidized rates to lower-income groups. Various suggestions are under consideration, including using the Benazir Income Support Program (BISP) network, issuing specific subsidy cards, or generating a one-time password (OTP) for eligible citizens’ ease. The ministry is reviewing all suggestions and will finalize the most viable and practical one with the help of all stakeholders, including petroleum dealers associations and trade bodies, to ensure effective implementation and relief to citizens.
The revision in petroleum prices for the second half of April 2023 is expected to be announced soon, and consumers are advised to prepare for a possible increase in prices. The government is also working to ensure sufficient supply of petroleum, discourage black marketing, and hoarding of fuel.
In conclusion, the new petroleum prices in Pakistan are set to come into effect on April 16, with the possibility of an increase in prices due to a decline in the value of the Pakistani rupee against the US dollar and an increase in international oil prices. The government is working on a scheme to provide petroleum products at subsidized rates to lower-income groups, while also ensuring sufficient supply and discouraging black marketing and hoarding of fuel.
Present coalition government doubles petroleum prices in Pakistan
