Islamabad, August 13, 2023 – Pakistan is on the brink of a crucial moment as it prepares to unveil the new petroleum prices for the second half of the current month on August 15, 2023.
This announcement holds immense significance for the nation, as it will serve as a litmus test for the newly-formed interim government.
READ MORE: FPCCI Slams Outgoing Government for Shocking Petroleum Price Surge
In a significant move just days before the completion of its term, the previous government, led by Prime Minister Shehbaz Sharif, implemented a substantial increase in petroleum prices in its final decision on July 31, 2023. However, with the dissolution of the national assembly imminent, the country now looks to Anwaar-ul-Haq Kakar, the nominated caretaker prime minister, to guide the nation through these turbulent times.
Kakar is set to take the oath of office on August 14, a day prior to announcing the new petroleum prices. The interim government faces a daunting challenge as it navigates the delicate balance between meeting the nation’s energy demands and ensuring economic stability.
READ MORE: Pakistan Shockingly Increases Petroleum Prices from August 1, 2023
One of the critical factors influencing the decision-making process for revising petroleum prices is the international oil market, which has recently witnessed a notable increase. The benchmark crude oil prices have surged by $2.05, reaching $86.96 since the beginning of this month, putting additional pressure on the government to make prudent decisions.
READ MORE: OGDCL Achieves Remarkable Production Boost in July 2023
Furthermore, the Pakistani Rupee (PKR) has faced depreciation against the US dollar, a trend that further complicates the task at hand. The exchange rate experienced a devaluation of PKR 1.85 in rupee value, reaching PKR 288.49 to the dollar on August 11, 2023, in the interbank foreign exchange market.
These intertwined factors, the rising international oil prices, and the weakening value of the Pakistani Rupee, present a formidable challenge for the interim government in determining the new petroleum prices for the second fortnight of August 2023. The government’s decision will undoubtedly have far-reaching implications for the nation’s economy, and all eyes will be on the caretaker prime minister and his team as they navigate these complex economic waters.
READ MORE: PSO Joins Forces with PPL and OGDCL for Revolutionary Greenfield Refinery Project
