Petroleum prices are expected to increase in Pakistan from July 1st, 2020. According to media reports, the prices will see a hike after a rise in the price of crude in the international market.
The crude oil, which was sold for $20 per barrel in the global market two months ago, its current price has risen to $41.18 per barrel, showing a 100% increase in its commodity price.
COVID-19 Impact:
The petroleum goods prices have seen significant fluctuation since the COVID-19 pandemic has hit the world. During this volatile period, the prices went to a historic low and even dipped to below zero in the United States market.
Oil Crisis in Pakistan:
The uncertainty of the international market also hit Pakistan as the government stopped its import due to a rapid plunge in prices. However, this decision and some other factors led to an oil crisis in the country. Most of the petrol pumps stopped selling as long ques of people were seen at different across the country.
The shortage also led to an investigation by the federal government. A fuel investigation committee found nine Oil Marketing Companies (OMCs) guilty of the oil hoarding. The committee proposed a Rs40million penalty for these companies. In its report, the committee said the licenses of these companies should be revoked, and their officials should be arrested for stocking and black marketing of the fuel.
The committee also said that it visited the oil depots of these companies and found ample stock of fuel in them. But the OMCs still did not supply it to their retailers to avoid loss. “However, these companies pocketed huge profits earlier, when prices went up in the global market,” the committee stated.
According to reports, OGRA will send summary to the government at end of this month. After receiving the summary, the ruling party is expected to revise the current prices of petroleum goods.
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