Another shock: Diesel may cost Rs24 more
ISLAMABAD: REFERENCES: Another oil boom continues with the high price of diesel expected to rise by 24 per liter from 16 August 2023, which will bring new oil inflation to already very high levels.Taller.
With rising global oil prices, Pakistan may increase the price of petroleum products from Rs 12 to Rs 24 per liter in its fortnightly review from 16-31 Aug 2023. Apart from a steep hike in diesel costs, the government may increase the price of petrol by about Rs 12 per litre.
Petrol and diesel prices have already gone up by Rs 20 per liter in the first adjustment in the first half of August. Experts say International Monetary Fund (IMF) lending restrictions have forced the government to pass on rising global prices to domestic consumers.
In the last two weeks, the price of refined products has risen from $13 to $111 a barrel. On top of that, gasoline costs have risen $7 to $97 a barrel. Significant diesel is used in agriculture and transportation and any increase in its price could create inflationary pressure in the country, affecting the life of the common man. Farmers who use diesel to grow crops in remote areas could be particularly hard hit by rising fuel prices.
During the Pakistan Muslim League-Nawaz (PML-N)-led coalition government, the oil industry and consumers have received a jolt from the economic downturn. In FY 2022-23, Pakistan’s economy is likely to expand by only 0.3% compared to 6% growth in the previous With the flood of smuggled Iranian oil entering the Pakistani market, sales in the domestic oil industry have declined, raising serious concerns among industry players.
Published in EDP BLOGS, August 14, 2023.
