Elections are going to be held in Pakistan, which is facing the biggest financial crisis in its history. The problems of the people of the country, who are already burning in the heat of inflation, are going to increase once again. In fact, a report has expressed the possibility that before the elections, an inflation bomb will explode on the public (Pakistan Inflation) and the prices of petrol and diesel (Pakistan Petrol-Diesel Price), which have reached the sky, will again be on fire. It has been said that in the beginning of February, the prices of petrol and diesel in Pakistan may be increased by Rs 5 to Rs 9 per liter.
Prices may increase on January 31
This apprehension has been expressed in a report by Dawn. It has been told that due to high international oil prices and import premium, the prices of petrol and high-speed diesel (HSD) in Pakistan may be increased by Rs 5-9 per liter on January 31. Quoting sources, the report said that the prices of both major petroleum products (petrol and HSD) have increased in the international market and Pakistan State Oil (PSO) has had to pay higher import premium. In such a situation, even though the Pakistani Rupee has appreciated against the US Dollar, still the prices of petrol and high speed diesel can be increased to reduce this increased burden.
Rupee improves, yet situation worsens
In the last two weeks, the price of petrol has increased from $ 83 per barrel to $ 86.5, while HSD has become costlier by almost $ 2 per barrel from $ 95.6 to $ 97.5. On the other hand, the value of Pakistani currency against the dollar has now come down to around Rs 280 instead of Rs 281. Amidst all this, the premium paid by PSO for product cargo security has increased by $ 2 per barrel on both the products. For High Speed Diesel it has increased from $4.2 to $6.5 per barrel and for Petrol it has increased from $7.5 per barrel to $9.5.
According to the report, on this basis the price of High Speed Diesel (HSD Price) may increase by Rs 4-6 per liter and the price of Petrol (Petrol Price) may increase by Rs 6.5 to Rs 9 per liter. However, the prices of kerosene and light diesel oil are expected to remain unchanged.
This agreement with IMF on petroleum levy
In Pakistan, petroleum levy of Rs 60 per liter is already being taken on both petrol and HSD. The caretaker government had set a budget target of collecting Rs 869 billion as petroleum levy on petroleum products during the current financial year in the agreement reached during the assistance between International Monetary Fund (Pakistan-IMF), but it is expected that That by the end of June 2024, this collection will exceed Rs 920 billion. Petroleum and electricity prices have played a big role in Pakistan's inflation rate in December 2023.
It is noteworthy that in Pakistan, petrol is mostly used in personal transport, small vehicles, rickshaws and two-wheelers and this has a direct impact on the budget of the middle and lower-middle class. On the other hand, any change in HSD price brings big fluctuations in the inflation rate. Because it is mostly used in heavy transport vehicles, trains and agricultural engines like trucks, buses, tractors, tubewells and threshers. Due to this increase, an increase is seen especially in the prices of vegetables and other food items.
