[vc_row][vc_column][vc_column_text dp_text_size=”size-4″]As global commodity prices continue to rise, Pakistan is considering raising petroleum prices by Rs. 12 to Rs. 22 per liter during the next bi-monthly review.
Tahir Abbas, the Head of Research at Arif Habib Limited (AHL), suggests that if international oil costs keep increasing, the government might raise rates beyond the current range of Rs. 12-22 per liter.
Recently, the government already hiked petrol and gasoline prices by around Rs. 20 per liter, reaching Rs. 273, as part of the conditions of the International Monetary Fund (IMF) loan, which required passing on rising global commodity prices to local consumers.
Abbas proposes a potential diesel price increase of Rs. 20-22 per liter and a petrol price hike of Rs. 12-13 per liter for the second half of August. In the past two weeks, refined product prices have surged by $13 per barrel to $111, and petrol prices have climbed by $7 per barrel to $97.
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These possible price increases could impact August’s inflation reading, and if inflation exceeds expectations, the central bank may raise its policy rate in September.
In response to these concerns, Khalid Tawab, a seasoned business leader from the Federal of Pakistan Chambers of Commerce and Industry (FPCCI), urges the government to reconsider raising petroleum prices. He recommends lowering the current petroleum development levy (PDL) of Rs. 50 per liter to provide relief to the public and businesses.[/vc_column_text][/vc_column][/vc_row]
