- Pakistan faces the possibility of another round of petroleum price hikes in September 2023.
- International benchmark Brent futures are currently at approximately $92.14 per barrel.
- The potential fuel price hike, if approved, is expected to further exacerbate.
Inflation-weary Pakistanis may be bracing themselves for yet another surge in petroleum prices, with reports suggesting that prices could increase by up to Rs15 per liter during the second half of September 2023. This anticipated price hike comes as global commodity prices continue their upward trajectory, placing additional strain on the already burdened populace.
Informed sources have indicated that the interim government may soon announce this price adjustment, attributing the increase to rising global oil prices, which have recently reached a 10-month high. The surge in oil rates has seen international benchmark Brent futures hovering around $92.14 per barrel, while US West Texas Intermediate crude has made modest gains, reaching $88.98 per barrel—a level last witnessed in November 2022.
As of now, the government has not officially communicated any updates regarding the expected price revision. The final decision on this matter is expected to emerge from forthcoming meetings.
Presently, the price of petrol stands at Rs305.36 per liter, with high-speed diesel priced at Rs311.84 after the most recent revision. Over the recent past, the federal government has been recurrently adjusting fuel prices every 15 days. If the proposed price hike is approved by the government, the new price for petrol would reach the Rs320 per liter mark. Additionally, it is worth noting that the government is currently imposing a record petroleum levy on both petrol and high-speed diesel.
Regrettably, this potential increase in fuel prices is likely to exacerbate the already soaring inflation rates in Pakistan, a nation grappling with the challenge of providing affordable access to food and other essential commodities for its citizens. The situation remains fluid, with Pakistan’s interim government facing the complex task of balancing the need for fiscal stability with the economic hardships faced by the populace.