Last Updated on: 10th July 2023, 07:32 pm
Petrol Price in Pakistan Expected To Increase From 16th April
Experts have estimated that the devaluation of the rupee against the US dollar and the rise in international oil prices over the past two weeks could push up local prices, it is possible that oil prices in Pakistan will rise on April 16, 2023.
Pakistan announces the petrol price review every 15 days based on international oil price developments and other domestic factors, including exchange rates.
The country maintained high-speed gasoline and diesel (HSD) prices for the next two weeks from April 1, 2023, to March 31, 2023.
While Finance Minister Ishaq Dar announced oil prices for the next fortnight, he left petrol and diesel prices at Rs 272 and Rs 293 per liter respectively. However, the price of kerosene and light diesel fell by Rs.10 to Rs.180.29 and Rs.174.68 respectively.
Since the beginning of this month, the Pakistani rupee (PKR) has seen a sharp decline against the dollar amid uncertainty over funding from the International Monetary Fund (IMF) and other friendly countries. The local currency was quoted at PKR 287.85 against the dollar on April 05, 2023, on the interbank foreign exchange market.
On the other hand, international prices for the benchmark crude oil Brent have also risen in recent days due to OPEC production cuts. At the end of March 2023, Brent was trading at $73 a barrel. However, it rose to $84 a barrel in the first week of April 2023.
Pakistan is a net importer of petroleum products to meet its domestic demand. Any change in exchange rates and increases in international oil prices affect local prices.
According to the Pakistan Bureau of Statistics (PBS), the country’s oil import bill fell to US$11.88 billion in the first eight months (July-February) of the fiscal year 2022/2023.
The country’s oil import bill fell 8.28% to $11.88 billion in the eight months of the current fiscal year from $12.95 billion in the corresponding months of the previous fiscal year.
On the other hand, due to the massive devaluation of the Pakistani Rupee (PKR), the import bill increased by 23%. In rupee terms, the oil bill was PKR 2.72 trillion for the first eight months of the current fiscal year, compared to PKR 2.21 trillion for the same months of the previous fiscal year.
In the oil group, imports of petroleum derivatives fell by 14.47% to $5,350 million in July-February 2022-2023, compared to $6,260 million in the same period of the year.
Also Read: Petrol Price in Pakistan Increased To Rs272 As Of 16th February 2023