Islamabad, June 14, 2023: Pakistan is gearing up to announce the petroleum prices for the final fortnight of the fiscal year 2022-2023 on June 15, 2023.
This decision by the government is expected to have significant implications due to the arrival of Russian oil and the upcoming general elections.
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The government’s stance on petroleum prices is likely to adopt a populist approach for two main reasons. Firstly, it aims to garner public support ahead of the impending general elections. Secondly, the government aims to alleviate inflationary pressures as the fiscal year concludes.
In recent decisions, the current government, which has faced criticism for maintaining high petroleum prices, has implemented two consecutive reductions. However, over the past year, the prices of petrol and high-speed diesel have increased by 24 percent, contributing to a significant rise in inflation.
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As of the week ending June 8, 2023, the Sensitive Price Indicator (SPI), which serves as a gauge for measuring inflation, has risen by approximately 40 percent compared to the same period last year. This increase has added to the urgency for the government to take measures to alleviate the burden on the general public.
The government, which recently presented the final budget of the current legislative assembly, has announced several relief measures aimed at providing support to the masses. These measures include substantial salary and pension increases in the budget for 2023-2024.
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Experts anticipate that the government will further reduce petroleum prices in order to ease the financial burden on the general public, especially with the general elections scheduled to take place within the next six months.
Moreover, the arrival of Russian oil in Pakistan is expected to have a significant impact on local prices. Russian oil is considerably cheaper compared to international market prices. As Pakistan is a net importer of petroleum products to meet domestic needs, the importation of Russian oil is anticipated to reduce the country’s oil import bill and contribute to a decrease in domestic market prices.
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The announcement of the petroleum prices on June 15, 2023, will shed light on the government’s approach to managing the cost of fuel in the country. This decision holds great significance as it will not only affect the general public but also play a crucial role in shaping public sentiment ahead of the upcoming general elections.
