Pakistan is preparing to announce the petroleum prices for the last fortnight of the fiscal year 2022-2023 on June 15, 2023.
The government’s decision regarding the petroleum prices is anticipated to take a populist approach due to two main reasons: firstly, to garner support from the public ahead of the upcoming general elections, and secondly, to alleviate inflationary pressure as the fiscal year draws to a close.
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Petroleum prices in Pakistan are updated on a fortnightly basis. The current government, which has faced criticism for maintaining higher petroleum prices, has already implemented two consecutive reductions in recent decisions. Over the past year, the government had increased the prices of petrol and high-speed diesel by 24 percent, contributing to a significant rise in inflation.
The Sensitive Price Indicator (SPI), which serves as a gauge for measuring inflation, has increased by approximately 40 percent as of the week ending June 8, 2023, compared to the same period last year.
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The present government, which recently presented the final budget of the current legislative assembly, has announced several measures aimed at providing relief to the masses, including substantial salary and pension increases in the budget for 2023-2024.
Experts believe that the government is likely to further reduce the prices of petroleum products in order to alleviate the burden on the general public, especially with the general elections expected to take place within the next six months.
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Furthermore, experts argue that the arrival of Russian oil in Pakistan would have a significant impact on local prices. Russian oil is considerably cheaper when compared to international market prices. As Pakistan is a net importer of petroleum products to meet its domestic needs, the importation of Russian oil is expected to not only reduce the country’s oil import bill but also 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. The decision will not only impact the general public but will also play a crucial role in shaping public sentiment ahead of the upcoming general elections.
