The government of Pakistan has updated petroleum prices for June 2023. The new prices will remain in effect until the end of the month.
The revised prices are as follows:
Petrol: Rs262 per liter
High-Speed Diesel: Rs253 per liter
Kerosene: Rs164.07 per liter
Light Diesel Oil: Rs147.68 per liter
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The government of Pakistan reviews petroleum prices every 15 days, with the latest review conducted on June 15, 2023. The new rates came into effect on the following day and will be maintained until June 30, 2023.
This announcement carries particular significance due to the arrival of Russian oil and the upcoming general elections in Pakistan. Despite the availability of cheaper Russian oil, the government has decided not to adopt a populist approach by further reducing petroleum prices.
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Over the past year, the prices of petrol and high-speed diesel have surged by 24 percent, resulting in notable inflationary pressures and government criticism. The Sensitive Price Indicator (SPI), which serves as a measure of inflation, has reported a concerning increase of approximately 40 percent for the week ending June 8, 2023, compared to the corresponding period last year. This rapid surge in inflation has heightened the government’s responsibility to take measures to alleviate the financial burden on the general public.
In response to public outcry, the government recently presented the final budget for the current legislative assembly, introducing several relief measures aimed at supporting the masses. These measures include significant salary and pension increases for the 2023-2024 budget year.
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Given the anticipation surrounding the general elections scheduled within the next six months, experts had expected the government to further reduce petroleum prices in order to ease the financial strain on the public.
Moreover, the arrival of Russian oil in Pakistan is expected to have a substantial impact on local prices. Russian oil is considerably cheaper compared to international market prices. As Pakistan heavily relies on petroleum imports 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 government’s decision to maintain the current petroleum prices reflects a delicate balance between the economic impact of rising inflation and the potential benefits of cheaper imported oil. With the general elections drawing nearer, the public will closely monitor the effects of this decision on their daily lives and the overall economic situation in the country.
