Islamabad:
Prime Minister Shehbaz Sharif has formed a committee with 16 members to monitor the impact of volatility in oil prices in the wake of Israel’s attack on Iran, a large oil -producing country.
A notification issued Friday by the Ministry of Energy said there has been a sudden increase in oil prices in the international market after the start of the Israel-Iran conflict.
Under the announcement, the committee includes – to be convened by the Minister and the Financing – Petroleum, Power Ministers, Prime Minister of Finance and State State Bank Governor.
The committee will closely monitor the forward/futures prices for oil products and the predictability of the supply chain in view of the current conflict in the region.
It will also determine Forex consequences of award volatility for the short and medium term and suggest a plan if necessary – to ensure that there is no supply disorders and that the market is well delivered.
It will also perform a detailed analysis of the tax effect in the event of a prolonged conflict. The committee may cooperate any other member as it is considered necessary for the fulfillment of its mandate.
“The petroleum department must provide secretary support to the committee. The committee submits its recommendations weekly for the review of the Prime Minister,” it added.
Fuel prices
Consumers support yet another increase in fuel prices, as estimates suggest that gasoline and high -speed diesel (HSD) prices may increase in the coming two weeks review, largely driven by an increase in international oil prices.
According to official sources that are familiar with the pricing structure, gasoline is expected to see a marginal increase of about R1 per year. Liter, while the price of high -speed diesel could increase by approx. RS5 per Liter.
The changes are valid from June 16 to June 30 with the final decision to be made based on import costs calculations on June 15.
At present, the ex-depot price of gasoline is on RS252.63 per year. Liter. Rickshaws and private cars used widely used in motorcycles, rickshaws and private cars affect any change in gasoline price significantly the cost of the middle and lower middle -income groups.
Meanwhile, the ex-depot price of HSD RS254.64 per Liter. Diesel burns the majority of Pakistan’s heavy transport sector, including trucks, buses, tractors and agricultural machinery, such as threshing and pipe wells.
Given its broad use in agriculture and freight, an increase in diesel price typically triggers inflation across food supply chains.
