After every 15 days, petrol prices are revised in Pakistan. OGRA (Oil and Gas regulatory authority) sends a new recommendation to the government after every 2 weeks for new prices. Last time, the prices were increased by 5 rupees. This time however the petrol prices are likely to be reduced in Pakistan.
Pakistan has to import 80% of its fuel for its consumption and only produces about 20% locally. The local refineries are unable to provide for the needs of the masses. Every Government is always worried about the balance of payments and foreign reserves due to petrol.
Since the start of the new government in Pakistan, fuel prices have skyrocketed and reached an all-time high of 272 rupees. As there is no alternative available, consumers are bound to use expensive fuel. CNG (Compressed Natural Gas) is also unavailable because of shortage as it is consumed domestically and industrially.
As per the assessment, the Petrol prices are likely to reduce by 3 to 7 rupees and Diesel prices are likely to be decreased between 10 to 20 rupees. The commercial usage of diesel and petrol has a direct impact on the life of the end consumers. The higher prices make everything associated with them expensive and out of reach.
Many end consumers are not happy with the expected price change in fuel prices. In the international market fuel prices are on a declining trend. The benefit of less fuel prices internationally is not delivered to end consumers and they have no choice but to use expensive fuel. Though there were hopes of getting subsidized fuel from Russia but it never happened.
Also, Government was trying to launch a cheaper fuel program for low-income level end consumers but IMF has rolled it out. As per IMF the cheaper fuel program is not clear and can create issues later. Let’s hope this time the new prices are justified and substantial!