Further Increase in petroleum product prices
Amidst a recent surge in global oil rates and a devaluation of the rupee against the US dollar, which has resulted in a staggering Rs12 impact on the exchange rate, the Oil and Gas Regulatory Authority (OGRA) appears poised to recommend an increase in petroleum product prices for the upcoming fortnight.
From September 1, 2023, the price of petrol will undergo a substantial rise of Rs12 per liter. On other side diesel also experience significant increase of Rs14.83 per liter.
A senior official from the Energy Ministry commented, “This would expose the masses to a further surge in inflation making the lives of the masses more miserable.”
With the uprising value of dollar now standing at 301.75 in the interbank and approximately Rs319 in open market, its impact on fuel prices is worse and it will increase fuel prices which ultimately cause inflation.
Moreover, authorities have opted to calculate POL product prices from September 1, 2023, based on a rupee-dollar exchange rate of Rs299, taking into account the Rs12 impact. Although, Pakistan State Oil (PSO) has confirmed the announcement of fuel increment about 10% in LC.
Currently, the Mogas price stands at Rs290.45 per liter, with expectations of an increase to Rs302.45 per liter. Likewise, the High-Speed Diesel (HSD) price experience frequent rise from Rs293.40 to Rs308.23 per liter.
Diesel is actively used in heavy transport vehicles, trains, and agricultural machinery, including trucks, buses, tractors, tube wells, and threshers, significantly contributing to the costs of vegetables and other food items. Conversely, petrol usage is predominant in private transport, small vehicles, rickshaws, and two-wheelers, directly impacting the budgets of middle and lower-middle-class citizens.
Petrol, Diesel, Inflation
