As the current government is trying to find a balance between increasing inflation and boiling public sentiment, petrol can become more expensive! As per different reports and analyses shared, petrol can become 30 rupees more expensive. If this is true, Petrol will become more than 300 rupees per liter. Here is what we know so far.
As per media reports, petrol and diesel are expected to be increased from 10-20 rupees per liter. Kerosene oil is also expected to increase from 10 to 15 rupees per liter too. All of these price increases are being aimed at increasing dollar rates and crude oil rates in open markets.
Pakistan is not a crude oil-producing country, It has o import the majority of crude oil from different countries. Though Oil fields are present in different areas of Pakistan the quantity of oil is way less to fulfil our needs. Since we have to import it, we need to buy it from Gulf countries. The crude oil is traded in dollars. Due to inflation, the dollar rate has increased much higher and the purchase price of crude oil is more expensive.
Pakistan also tried the venture of buying cheap crude oil, refining it, and using it. For this purpose, a deal was signed between Pakistan and Russia. The issue with Russian Crude Oil is its impurity and less content of petrol, diesel, and kerosene oil. Though it has more content of furnace oil which can be used in making electricity.
Also, this venture is suspended due to not being a cost-effective solution. As per Pakistan Refinery Limited, refining Russian crude oil is a labor-intensive job with fewer results. Also, this crude oil is coming to Pakistan through different ports, adding to its delivery cost. The Russian crude oil deal seems to be halted for now and may be discontinued in the future.
The fuel price includes multiple taxes and duties. If they are revoked, we can have petrol at a much more reasonable price. Fuel prices are all-time high in Pakistan. Let’s see what changes OGRA has to do in the next price change (after 15 days)