People who are tired of inflation should prepare for a severe shock as the cost of petroleum goods is anticipated to climb by Rs10–14 per liter over the span of the next two weeks.
Industry sources claim that the government may raise the price of petroleum goods in response to the rising price of oil on the world market.
In contrast to the previous assessment, when the authorities didn’t pass on the effects of the rupee depreciation to the general public, the hike might reach Rs. 14 per liter if the government also adjusts the currency rate losses.
For the upcoming price review with the exchange rate loss adjustment, the country’s oil industry reports that the ex-depot price of petrol is Rs14.77 per liter.
The price of petrol ex-depot is currently Rs272 per liter, but if the government decides to pass along the effects of rising oil costs internationally and currency losses, that price may rise to Rs286.77 per liter.
Due to rising global oil costs, the government would still have to raise the price of gas even if it didn’t adjust for exchange losses. Based on the current tax rate, an increase in the price of petrol is anticipated. The government charging Rs. 50 per liter tax on petrol but charging no general sales tax.
The government is responsible for paying Pakistan State Oil (PSO) an exchange loss adjustment of Rs 5 per litre because it previously failed to incorporate such adjustments in order to keep the price of fuel on the low side.
When the market-based exchange rate was permitted in accordance with International Monetary Fund (IMF) guidelines, the POL prices would have been on the higher side following a significant loss of the rupee against the dollar during the previous two and a half months.
