Pakistan is making ready to issue new petroleum prices on April 15, 2023 for next fortnight starting Aril 16, 2023.
Experts believed that domestic prices may go up due to depreciation in rupee value against the US dollar and uptick in international oil prices during past couple of weeks.
The Pakistani Rupee (PKR) has witnessed a sharp decline against the dollar during since start of the current month owing to uncertainty of inflows from International Monetary Fund (IMF) and other friendly countries.
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The local currency hit recorded high at PKR 287. 85 against the dollar on April 05, 2023 in interbank foreign exchange market.
On the other hand, the international prices of benchmark Brent crude also record an increase during past days owing to production cut by the OPEC.
The Brent crude was trading at $73 per barrel by end of March 2023. However, it went up to $84 per barrel in the first week of April 2023.
Pakistan is net importer of petroleum products to meet its domestic demand. Any revision in exchange rate and uptick in international oil prices affect the domestic prices.
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Country’s oil import bill fell to $11.88 billion in first eight months (July – February) of fiscal year 2022/2023, according to data released by Pakistan Bureau of Statistics (PBS).
The petroleum import bill of the country recorded a decline of 8.28 per cent to $11.88 billion during eight months of the current fiscal year as compared with $12.95 billion in the corresponding months of the last fiscal year.
However, on the flip side the massive depreciation in Pakistan Rupee (PKR) resulted in the import bill by 23 per cent. In rupee term, the petroleum bill increased to PKR 2.72 trillion during first eight months of the current fiscal year as compared with PKR 2.21 trillion in the same months of the last fiscal year.
In the petroleum group, the import of petroleum products registered a decline of 14.47 per cent to $5.35 billion during July – February 2022-2023 when compared with $6.26 billion in the same period of the last fiscal year.
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Meanwhile, import of petroleum crude recorded an increase of 10.32 per cent to $3.48 billion during first eight months of the current fiscal year as compared with $3.16 billion in the corresponding months of the last fiscal year.
Pakistan every 15 days announces revision in petroleum prices on the basis of changes in international oil prices and other domestic factors including exchange rate.
The country on March 31, 2023 kept the prices of petrol and high speed diesel (HSD) for next fortnight starting from April 01, 2023.
Finance Minister Ishaq Dar announced the petroleum prices for next fortnight and kept the prices of petrol and diesel unchanged at Rs272 per liter and Rs293 per liter, respectively.
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However, the prices of kerosene oil and light diesel oil have been reduced by Rs10 each to Rs180.29 and Rs174.68, respectively.
On the other hand, the government is preparing to provide petroleum products at subsidized rates to lower-income group.
Recently, Minister of State for Petroleum Musadik Malik said that a scheme for the provision of low-priced petrol to lower-income groups was being worked out and it would be finalized in consultation with all the stakeholders.
The minister said that there were different suggestions under consideration including the utilization of BISP network, the issuance of specific subsidy cards or generating a one-time password (OTP) for the ease of eligible citizens.
He also apprised that petroleum dealers also presented some suggestions.
The ministry was reviewing all suggestions and it would finalise the most viable and practical suggestions and devise the mechanism in consultation with all the stakeholders so that implementation on the scheme and provision of relief to citizens could be ensured effectively.
The minister said that the petroleum dealers association and trade bodies were extending cooperation to the government in its efforts for ensuring a sufficient supply of POL products and discouraging black marketing, hoarding of fuel.
