Petrol price in Pakistan: The increase in the exchange rate, which is primarily in the local currency’s favor, is likely to result in lower petroleum product pricing in the upcoming oil sector regulator’s fortnightly review.
The Oil and Gas Regulatory Authority (OGRA) is scheduled to meet soon to decide how to adjust the price of gasoline for the next two weeks beginning on October 16, 2022.
According to industry sources, the price of gasoline may drop by an estimated Rs10–15 per litre and that of diesel by Rs2 per litre if the government decides to pass on this rupee–dollar parity impact to the final customers.
As demand for dollars from importers exceeded sales of dollars by exporters, who opted to stay on the sidelines in anticipation of range-bound trading in the local currency moving forward, the rupee declined for the second straight session on Thursday, according to dealers.
However, the sources stated that because Pakistan has agreed with the lender of last resort to gradually add Petroleum Development Levy (PDL) to the prices of fuels, this facilitation may be delayed due to concerns from the International Monetary Fund (IMF) on the petroleum subsidy.
The impact of the currency rate will be reduced by the addition of PDL.
According to the oil business, all petroleum prices are trending downward globally; however, it is unclear if the government would pass the impact down to citizens or offset it by increasing taxes.
On Thursday, oil prices reversed course and increased by around 2% as investors shrugged over higher-than-expected stocks of crude and gasoline and the low levels of diesel inventory ahead of the winter.
Finance Minister Ishaq Dar, according to analysts, appears to be adopting a populist approach and may refrain from burdening the populace further—at least for the time being—keeping his promise made before taking the position.
If foreign markets kept falling, the finance minister might decide to ignore the effects of a worldwide downturn and a stronger currency.
