NewDelhi: Pakistan is likely to witness a steep hike of rs.120 per litre in diesel if it is applied by the new Shehbaz Sharif government. If this increase materializes, then the price of diesel in Pakistan can go beyond Rs 200 per litre. Earlier, former Prime Minister Imran Khan, while announcing the budget for 2022-23, announced a reduction in the prices of petrol and diesel by Rs 10 per liter as well as further freezing the prices.
Pak Oil and Gas Regulatory Authority advised for price hike
In fact, the Pakistan Oil and Gas Regulatory Authority (Ogra) has suggested an unprecedented increase of Rs 120 per liter (over 83 percent) in the prices of petroleum products from April 16 to fully recover the imported cost. is effective. Prime Minister Shehbaz Sharif will now have to decide whether to lift the four-month price freeze (till June 30) announced by his predecessor Imran Khan on February 28.
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The fall in the Pakistani rupee against the dollar also had an effect.
Actually, due to the Russo-Ukraine war on the one hand, where there has been a huge jump in the price of crude oil. At the same time, the depreciation of the Pakistani rupee against the US dollar has also affected the prices of petrol and diesel in Pakistan, resulting in an increase of Rs 5.54 per liter or 3.03 percent in petroleum prices. It has been said in the report that the average value of dollar has increased from Rs 182.15 to Rs 188.15 in the past days.
Sources said the new government will be in a dire situation and may choose not to increase prices to garner public support. However, these officials are of the view that the previous Pakistan Tehreek-e-Insaf (PTI) government had kept petroleum prices unchanged from mid-March, which reduced the subsidy bill for petroleum products by Rs 30 billion for the first two weeks of April. If the current government decides to continue with this policy, it will be forced to give another Rs 30 billion in subsidies from April 16 to 30. In all, it will have to bear a burden of Rs 60 billion to keep oil prices afloat. Significantly, the decision to keep oil prices unchanged in Pakistan had no legal basis, as it was not officially approved.
Pakistan has to face the tough condition of IMF also which has given loans to the country. IMF is already seeking some reforms and hike in the electricity prices to repay the high-interest cost of previous loans.
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