In an unwelcome development, Pakistan braces itself for another potential petrol price hike twice in the same month. The looming increase, attributed to the rising global petroleum market, could hit wallets hard as early as August 16. The caretaker government is set to announce the new prices on August 15, setting the stage for what could be a challenging situation for the nation.
Petrol Price Hike
Reports suggest that petrol might see a sharp spike of Rs. 15 per liter, while diesel could become costlier by Rs. 20-24 per liter. This anticipated escalation in petroleum costs directly results from the commodity’s soaring value on the international market.
Global Market Dynamics
The surge in crude oil prices on the global stage is a driving force behind this prospective price hike. Crude oil’s value has surged from $ 86 to $ 91 per barrel, marking a $ 5 increase. An extra $2 per barrel is also levied as a separate premium charge on crude oil.
Moreover, diesel and petrol have increased by $5 per barrel, jumping from $97 to $ 102 per barrel on the international market. If these trends persist, Pakistan’s citizens could experience a substantial Rs. 15 per liter increase for petrol and a significant Rs. 20 per liter for diesel.
Economic Landscape
The previous government had already implemented a hefty Rs. 19 per liter hike in petrol and diesel prices in accordance with the International Monetary Fund’s (IMF) stipulations. As the interim government’s first significant economic decision, this petrol and diesel price adjustment is undoubtedly a crucial development, influencing individual budgets and broader economic dynamics.
The intricate interplay of global market trends, currency fluctuations, and government policies adds complexity to the situation. It is yet to be seen what impacts these changes will have on the country’s economy.
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