KARACHI: Caretaker Commerce and Industries Minister Gohar Ejaz expressed optimism that the public would receive “good news” regarding petrol prices on October 1, the date when the government will announce revised petroleum product prices. He attributed this optimism to the recent strengthening of the rupee.
During a media briefing in Karachi alongside Sindh Governor Kamran Tessori, Minister Ejaz explained that the increase in inflation was a result of the rupee’s depreciation against the US dollar. He pointed out that last year, the exchange rate was 160 rupees, but this year, it reached 305 rupees. Consequently, the prices of all imported commodities have risen.
Ejaz stated that the local currency was now stabilizing, leading him to believe that there would be positive news regarding petrol prices on October 1. He also expressed hope for a reduction in energy prices.
This statement comes after significant increases in petrol prices by the caretaker government. The interim government first announced a nearly Rs18 per liter increase in petrol prices on August 15. Subsequently, there were further substantial price hikes on September 1 and two weeks later, with a Rs26.02 per liter increase in petrol prices.
These price hikes have faced criticism from various sectors, including the business community, transporters, and politicians. The interim government attributed these increases to rising global petroleum prices, existing tax rates, import parity prices, currency fluctuations, and a slight uptick in international oil prices.
It’s worth noting that at present, there is zero general sales tax on all petroleum products in Pakistan, but the government imposes a petroleum development levy (PDL) of Rs60 per liter on petrol and Rs50 on high-speed diesel (HSD) and high octane blending component. Additionally, customs duties of about Rs18 to Rs22 per liter are imposed on petrol and HSD.
