The government on Monday jacked up the price of petrol by Rs6.72 per litre for the next fortnight, despite the fact that the oil price on the international market dropped by another $4 a barrel, or 5%, on Monday to $94.21.
“In the wake of fluctuations in petroleum prices in the international market and exchange rate variations, the government has decided to revise the existing prices or petroleum products to pass on the impact to the consumers,” the statement released by the Finance Division read.
While the government raised the price of petrol, it slashed the price of diesel by Rs0.51. In line with the new changes, the price of petrol will be Rs233.91 per litre, diesel will be Rs244.44 per litre, kerosene oil will be sold for Rs199.40 per litre, and the price of light diesel oil will be Rs191.75 per litre. The new prices will come into effect from August 16, 2022.
In the international market, Brent crude was trading at nearly $98 a barrel on Sunday, August 14, but the price registered a sharp decline on the first business day on Monday.
Since July 19, Brent has dropped by $12 a barrel. It was being traded at $107 a barrel last month.
West Texas Intermediate (WTI) – the crude oil that is mainly used in the United States – was trading at $88.56 a barrel on Monday. The latest drop in crude oil prices in being linked to slowing economic activity in China. Beijing is both the biggest importer and consumer of crude oil. Rising inflation in the west has also checked oil prices which soared sharply after the Russian invasion of Ukraine in February. The government in Pakistan was expected to announce a decrease in the prices of petroleum products on Monday. Oil prices in the country are calculated by the Oil and Gas Regulatory Authority (Ogra) based on the average exchange rate of the rupee and international oil prices for the past fifteen days. In recent days, the Pakistani rupee has emerged stronger against the US dollar on the back of growing optimism in the market as Pakistan’s chances of securing an IMF loan tranche improved.
