Another petrol price revision is about to happen, and there goes our Finance Minister Shaukat Tarin, dropping another hint on a petroleum price hike. Train says that the government is paying Rs. 104 billion per month to keep the petrol prices at Rs. 150 per litre. At the current international rates, the actual domestic petrol price is Rs. 240 per litre.
Tarin addressed a seminar on the Revival of Pakistan Economy and Outlook in 2022, organised by the Aiwan-e-Karkunan-e-Pakistan and the Nazria-e-Pakistan Trust.
Super-Cycle of Inflation
The Federal Finance Minister expressed his views on the super-cycle of inflation the country is caught up in. He said that the year 2022 will be the year of growth. This year, the government is expecting a growth rate of 5%, and the IMF believes that this 5% growth rate of Pakistan will sustain till 2026.
As per Tarin, growth is not a worry for the government; the super-cycle of inflation is. He said the government is expecting an inflation rate of 8 to 10%. And if this inflation prolongs, it will further affect the public.
Current Petroleum Prices
Earlier this month, the government reduced the petrol and diesel prices by 10 rupees, light diesel oil price by 5 rupees, and kerosene oil price by one rupee. Currently,
Petrol is at Rs. 149.86 per litre.
High-speed diesel is at Rs. 144.15 per litre.
Kerosene oil is at Rs. 125.56 per litre.
Light diesel oil is at Rs. 118.31 per litre.
We all know how the ongoing Russia and Ukraine crisis has troubled the world. The war took international fuel prices over $100 per barrel. As a result, the prices in our local market went up to Rs. 160 per litre.
Thankfully, the government reduced the rates in the last price revision. But what about this time? Will the government keep on taking the heat and paying hundreds of billions from the exchequer to keep the petrol prices at Rs. 150? Or will the burden be passed on to the public? Let’s see.
