Islamabad, June 19, 2023: Effective immediately, the Pakistani government has announced the petroleum prices applicable in Pakistan for the remainder of the month.
The prices will remain unchanged from June 19, 2023, until the end of June. The following prices will be applicable across the country:
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1. Petrol: Rs262 per liter
2. High-Speed Diesel: Rs253 per liter
3. Kerosene: Rs164.07 per liter
4. Light Diesel Oil: Rs147.68 per liter
Finance Minister Ishaq Dar confirmed this decision, assuring the public that the prices would not be revised until June 30, 2023. This announcement by the government holds significance due to the arrival of Russian oil and the upcoming general elections.
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Despite the availability of cheaper Russian oil, the government has chosen not to adopt a populist approach by reducing petroleum prices further. Over the past year, the prices of petrol and high-speed diesel have increased by 24 percent, resulting in significant inflationary pressures and criticism for the government.
The Sensitive Price Indicator (SPI), which is used as a measure of inflation, has recorded a concerning increase of approximately 40 percent for the week ending June 8, 2023, compared to the same period last year. This rapid surge in inflation has intensified the need for the government to take actions 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 substantial 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 to alleviate the financial strain on the public.
Additionally, the arrival of Russian oil in Pakistan is expected to have a significant 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.
Note: This news report is based on the information available as of June 19, 2023, and the petroleum prices mentioned are applicable until the end of June.
