As reported previously, Prime Minister Shahbaz Sharif has reduced the prices of fuel in the country.
Here are the updated petrol and diesel prices in Pakistan effective from 15th July 2022.
|Old Price (PKR/Ltr)||New Price (PKR/Ltr)||Decrease (PKR)|
In the last couple of weeks, the Brent crude prices took a dip thanks to low demand and worldwide economic uncertainty. The per barrel price has reduced by $23 in the international market to $94 per barrel. The PM expressed his intent to pass the relief to the nation and asked concerning departments and ministries including Oil and Gas Regulatory Authority (OGRA) on 12th of July to reduce the prices.
The reduction in the prices is no doubt a relief for the nation who is already hit pretty badly thanks to the eye watering inflation on top of the high fuel prices. But this is also a reality that the price reduction is not even quarter of the increase the fuel prices saw in the last couple of months.
Just over a couple of weeks ago the current government added Rs18.83 per litre on account of petroleum levy on some of the POL products. The government expressed its concerns over the potential payment of Rs1.20 trillion in the shape of subsidy in case the prices are not increased at the time.
Keep in mind there is a petrol station closure strike called by the Pakistan Petroleum Dealers Association. The association has announced a country wide closure of stations on 18th July over the insufficient profit margin on the sale of petrol and diesel. The fuel station owners are demanding an increase in their profit margins from current 2.5% to at least 6%. The association is looking for an increase due to the increasing fuel costs as well as the overall inflation in the country.
The prices are to remain volatile for now. Our price not only depend on the international market, but it is heavily linked with our own economic uncertainty and turmoil.