Islamabad, July 29, 2023 – Pakistan is set to announce petroleum prices for the first half of August 2023 on July 31. Analysts are predicting a significant decline in petroleum prices, as the current government faces a delicate balance between catering to the needs of the citizens and managing economic pressures.
The upcoming announcement will be the last revision in petroleum prices by the present government, as the legislative assembly completes its tenure on August 12, 2023. The government has been revising petroleum prices on a fortnightly basis, with the most recent decision taken on July 15, 2023, bringing relief to the public by reducing prices of petrol and diesel.
However, experts believe that this final revision might be a populist move, considering the government’s inclination towards taking tough decisions during its tenure, which began in April 2022. Over the course of their term, the government had significantly increased petroleum prices to fulfill the loan program requirements of the International Monetary Fund (IMF), imposing a hefty petroleum levy.
As Pakistan relies heavily on imported petroleum products to meet domestic demand, payments are made in US dollars. Unfortunately, the Pakistani Rupee (PKR) has experienced continuous decline against the dollar in the past week, leaving the government with limited room to reduce petroleum prices further.
With only a few days left in office, the present government faces a delicate balance between catering to the needs of the citizens and managing economic pressures. As they bid farewell to power, the final decision on petroleum prices could have lasting implications for the incoming government, shaping the energy landscape for the next administration.
The citizens of Pakistan are eagerly awaiting the government’s last announcement, hoping for a positive surprise in the form of reduced petroleum prices. Nevertheless, the current economic constraints and exchange rate fluctuations may limit the extent of any potential reductions.
As the country awaits this crucial announcement, all eyes are on the government to see if they can amaze the citizens one last time before stepping down from their positions of power and authority.