ISLAMABAD: Due to the largest impact of global oil prices on domestic oil rates in Pakistan, the government is expected to make a partial rise in oil prices to eliminate subsidies to satisfy commitments with the International Monetary Fund (IMF).
A day after Pakistan and the IMF agreed in principle to prolong the delayed bailout program for up to a year and boost the loan amount to $8 billion, there was talk of a rise in oil prices. The global lender decided to extend the program for another nine months to one year, subject to final modalities, as opposed to the initial end-period of September 2022, according to the sources.
Following rumors of a rise in petroleum product prices, there were reports of oil scarcity in several sections of the country.
According to reports, the entire impact of higher global oil prices and the rupee’s devaluation against the dollar was a raise of Rs65 per liter for diesel and Rs26 per liter for petrol in the local market. However, in the first phase, the government would increase the price of petroleum products by a little amount.
In the middle of political turmoil, the previous prime minister, Imran Khan, had frozen oil prices until the budget.
From April 16, the oil and gas regulatory authority (Ogra) has submitted a summary to increase the price of diesel by over Rs51 per liter to eliminate price disparity claims.
Prime Minister Shehbaz Sharif, on the other hand, had refused to raise prices and had rejected the summary.
Based on actual sales as of Friday, Motor Spirit (MS) has usable supplies of 570,274 metric tons, enough to supply 23 days of demand. Based on the actual sale, HSD usable stocks were 436,360 metric tons for a 15-day supply.
Diesel, on the other hand, was in strong demand, with 37,000 tons per day. Officials say the scarcity is due to stocking in anticipation of a likely hike in petroleum product prices beginning May 1.
