- Pakistan faces potential petrol price hikes of Rs12 to Rs22 per litre.
- Government’s move to pass on the burden of higher international prices to consumers.
- Prices of refined products surged by $13 per barrel, reaching $111 per barrel.
In the latter half of August, Pakistan might face additional petrol price hikes ranging from Rs12 to Rs22 per litre due to the surge in global commodity prices. Tahir Abbas, Head of Research at Arif Habib Limited, warned that if international oil prices continue to rise instead of stabilizing, the government may announce even larger price increases beyond the expected range.
Earlier in August 2023, the government had already raised petrol and diesel prices by almost Rs20 per litre, bringing local prices to around Rs273 per litre, as part of the conditions of an IMF loan. This decision was taken to shift the burden of rising global commodity prices to local consumers instead of subsidizing, in order to address the challenges in the country’s economy.
Abbas further stated that there is a possibility of diesel prices increasing by Rs20-22 per litre and petrol prices by Rs12-13 per litre in the latter half of August. The prices of refined products have surged by $13 per barrel in the past 15 days, reaching $111 per barrel, while petrol prices have risen by $7 per barrel to $97 per barrel during the same period.