After the recent jump in petrol price to Rs331 per litre, Pakistan’s rate rose to $1.1, a cent more than the current rates in the US. However, the country’s petrol price is still lower than regional peers.
The government charges Rs60 per litre petroleum development levy and Rs18-22 per litre customs duty, so about a quarter of the price is made of taxes.
Petrol has become costlier by 20pc since the caretaker government took over because of the rupee’s depreciation, while international oil prices are rising. The Organisation of the Petroleum Exporting Countries-Plus has tightened supply to push up prices and will probably continue to do so till the end of the year.
US Energy Information Administration estimates that global oil inventories will decline in the coming months and the price may not ease till the second half of 2024. So there is little relief to look forward to.
Published in Dawn, The Business and Finance Weekly, September 18th, 2023