Will Petrol Price Go up to Rs. 300/Liter?

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Last night, the government shocked the nation with another petrol bomb as petrol price was increased by Rs. 15, taking the rate to Rs. 248.74 as compared to the old price of Rs. 233.89. And it means, we will get only 2 liters of petrol in Rs. 500, isn’t it just WOW! This new hike will further burden the masses as economic experts has stated that the inflation reached 21.3% in June, which is highest since 2008.

And we all know that inflation in Pakistan is directly linked with the petrol prices. As soon as petroleum goods rates go up, everything becomes expensive. The last night’s hike is 4th by this government since April, taking the rate of petrol from Rs. 150 to current Rs. 248.74, a huge jump in matter of couple of months.

Petrol Prices July 2022

The major reasons behind this continuous increase are economic uncertainty, IMF conditions for loan, Russia-Ukraine war and depreciation of Pakistani rupee against US dollar. And in foreseeable future, none of these issues seems to be resolved, so, better fasten your belts because the ride is getting bumpier.

In all of this, the biggest question is where the petrol price will stop?

Will Petrol Price Reach Rs. 300?

One thing is almost sure that petrol price will further go up in coming weeks. The major reason is the government’s agreement with IMF to impose Rs. 50 Petrol Levy (PL) on per liter. In the fresh hike, the government has put Rs. 10 PL from Rs. 0. So, it means there are still Rs. 40.

Furthermore, currently there is 0% Sales Tax on petroleum goods, and it can go up to 17%. It means when GST will be applied, the prices will go further up, and again, not a good news for the people.

The only possible respite is if the international prices come down and rupee holds its ground against the dollar. If this doesn’t happen, then the situation would not get better.

What do you think will the petrol price reach Rs. 300? Please share your thoughts in the comments section.

 

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3 Comments
  1. Khurram says

    Yes, they are expected to go up because until now the governments have tried stabilising them through offering subisidies, which are now being ended for fulfilling I.M.F. program’s specifics.

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