Petroleum prices in Pakistan are probable to rise from July 1. This increase in petroleum follows an increase in petrol prices within the global market.
The price of crude oil has increased to $41.18 per barrel which was $20 per barrel in the market two months ago. This trend shows a 100% increase in its commodity price.
COVID-19 Impacts on Petrol Prices:
Since the COVID-19 pandemic has taken over the world, there have been enormous fluctuations in international oil prices. During this risky time period, the prices in the United States went to a historic low and even dipped to below zero. Due to the downfall in petrol prices, the Pakistan government has also decreased petrol prices to give relief to people in this pandemic situation.80
Oil Crisis:
The uncertainties in the global market had an impact on Pakistan in such a way that the government stopped its imports due to the speedy jump of prices. This decision made by the government and some other elements led to an oil crisis within the country. Lengthy ques were seen at different pumps across the country as most of the petrol pumps stopped selling.
The federal government made an investigation due to the shortage of oil. The investigation committee found that nine Oil Marketing Companies (OMCs) were involved in hoarding. The committee filed a penalty of RS40 million to the companies found guilty in this incident. The committee said that the officials of these companies should be arrested for black marketing the fuel and their license should nullify. The committee stated that it visited the warehouses of these companies and found an adequate amount of oils that were not sold yet by the OMCs to the retailers in order to avoid loss. The committee further stated that a huge amount of profit had been gained by these companies when the prices increased in the global market.
Dr. Waqar (economist) tells in the budget that the government will be fixing petroleum levy at Rs30 per liter while an additional freight margin and sales tax of 17% will also be implemented.
OGRA will deliver the summary of prices to the government by the end of the month. It is expected that the ruling party will revise the current price of petroleum goods.
