Pakistan to hike petrol prices amid economic turmoil

Islamabad [Pakistan], October 12 (ANI): Petrol prices in Pakistan are set for a hike as the country continues to reel under severe economic stress. The rise in prices this time is being seen due to a global rise in crude oil prices, Tribune reported.
Petroleum prices for Pakistan are primarily influenced by the escalating international prices linked to the ongoing crisis in the Middle East. Due to high smuggling and illegal trade, the country continues to suffer, and is dependent on international players for its energy security.
In the past two weeks, petrol prices have surged by approximately $2.80 per barrel, while HSD prices have jumped by around $7 per barrel in the international markets, The Tribune reported.
The central government of Pakistan is likely to raise petrol prices by Rs5 per litre and diesel prices by Rs13 per litre, in line with these international market trends. The news prices are expected to be announced on eve of October 15 coming into effect the next day according to Pakistani media sources.
Ary News noted that the Pakistani government is likely to increase the profit margin for oil companies by Rs1.35, raising it to Rs9.22 per litre. For petrol dealers, the proposed increase is Rs1.40, bringing their margin to Rs10.04 per litre.
Earlier, on October 1, the government had cut the price of petrol by Rs2.07 per litre for the next fortnight, bringing the rates down from Rs249.10 to Rs247.03 per litre.
Oil and Gas are major components of Pakistan's energy mix meeting over 79% of energy needs.
Official Pakistani sources have noted that the country is heavily dependent on imported oil, because of which volatility in the international market makes the country prone to oil supply disruption risk. This has been historically recorded on various occasions such as the Suez Crisis 1956, Six-days War 1967, Iranian revolution 1979, and the Gulf crisis.
The Tribune noted that the average international price of petrol has risen to nearly $79 per barrel, up from around $76 per barrel. Meanwhile, HSD prices have increased from approximately $80.50 per barrel to about $87.50 per barrel during the same period.
As of now, the current price of Petrol in Pakistan is Rs 247 whereas for Diesel it stands at Rs 259. Compared to India where Petrol and Diesel prices stand at an average of Rs. 100 and Rs. 90 respectively.
The rise in prices is set to significantly impact the middle and lower classes of the country. The country, which is already reeling under the pressures brought by climate change, hike in prices and volatility in international markets is set to see increased economic stress upon the citizens. (ANI)