As inflation rises on a global level, its aftershocks are felt all around the globe. Recently the Government of Pakistan has increased petrol and diesel prices by 20 rupees. Now, economists are anticipating that Petrol & Diesel prices may increase again after 15th August in Pakistan. Here is what we know so far.
Internationally, the oil prices are increasing. If they continue increasing, unfortunately, the Government will have to increase the fuel prices. It is not possible to subsidize petroleum prices in Pakistan if the international market is too high.
Previously, the government increased fuel prices by 20 rupees and now the current fuel prices are 273 rupees a litre in Pakistan. OGRA is the price regulating authority that regulates fuel prices after every 15 days in Pakistan. This time, it is anticipated that the price hike will be similar to the last one as fuel prices are going higher in the international market.
As per financial experts, the prices may increase up to 20 rupees in the case of petrol and 10-12 rupees for diesel. Globally petrol & diesel per barrel fuel prices have increased from 7 to 13$ respectively. The impact of the international market is going to come on our local market. As per economists, the government should decrease the petroleum levy which is 50 rupees per litre. This may help in providing a better price for petrol & diesel in Pakistan.
Being an undeveloped country, we can not fully focus on alternative fuels and going electric. these things will take time and infrastructure development which is not available in Pakistan and not coming anytime soon. Though the government was emphasizing developing electric bikes set up but there is no point in importing them from China. This will cost us more as our dollar reserves will decline and we will still need to import fuel to make electricity.