Govt likely to increase petrol prices

August 14, 2023 (MLN): Subject to the rising oil prices in the global market, the government may raise per liter petroleum prices fortnightly.

The two benchmarks, Brent Crude and WTI have witnessed an average increase of around `.5% during the last 15 days and are currently trading at $85.96 and $82.22 respectively.

The Organization of the Petroleum Exporting Countries and their allies, or OPEC+ continues to tighten supplies in order to lift oil prices.

OPEC+ is expected to erode oil inventories over the rest of this year, potentially driving prices even higher, the International Energy Agency said in its monthly report on Friday.

With respect to refined petroleum products, prices during the last two weeks have risen by $13 per barrel to $111 per barrel, while petrol prices have climbed by $7 per barrel to $97 per barrel.

It is important to note that the government has already hiked petrol and HSD prices by nearly Rs20 with effect from August 01, 2023.

The petroleum levy on petrol and HSD currently stands at Rs55 and Rs50 respectively.

One of the primary conditions set by the IMF for its Stand-By Arrangement (SBA) is that Pakistan needs to pass on the rising international commodity prices to the local consumers.

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