Islamabad:
The federal government on Monday night made a huge increase in prices of oil products for the next fourteen days, seen as an influence of the 12-day Iran-Israel war, which almost threatened to seek out the entire Middle East region.
According to a notification issued by the Financial Division, the price of gasoline was linked to RS8.36 per year. Liter, and the high -speed diesel (HSD) of RS10.39 per liter. Liters in the period 1. To 15.
“The government has decided to revise the prices of oil products for fourteen days starting today, based on the recommendations of OGRA and the relevant ministries,” the financing department said.
The message said that gasoline will now be available for RS266.79 per Liter – RS8.36 per Liters up from RS258.43 per Liter. Similarly, the HSD speed is linked to RS272.98 per Liter from RS262.59 per Liter, which detects a hike of RS10.39 per liter. Liter.
Pakistan is a net importer of oil and imports about 85% of its total requirements for oil products, mainly from the Middle East. The local oil and gas companies produce crude oil to meet 15% of the total oil needs.
Last month, Israeli air strikes resulted in Iranian nuclear and military places in a sharp rise in prices of crude oil, which burst 7-11% to about $ 82-87 per year. Barrel, which was the highest level of six months, according to reports.
This increase came after Iran’s threat to close the Hormuz Strait of the Persian Gulf. However, the ceasefire between Iran and Israel resulted in bringing back the price of crude oil to $ 67 per year. Barrel in the period 23-26. June, and about to return to the level before the war before June 26.
In Pakistan, HSD is widely used in the agricultural and transport sector. Therefore, the fresh increase in price will give an inflation crush on consumers. Due to its use in the transport sector, the cost of expansion will increase, resulting in higher inflation across the country.
Petrol is used, on the other hand, in motorcycles and cars and is considered an alternative to compressed natural gas (CNG). Gas tools had stopped providing originally gas to the CNG stations, especially in Punjab; Therefore, CNG stores had used imported gas for over a decade.
The recent increase in gasoline prices would also minimize the difference in the price of CNG and gasoline. Prices will take effect on the first day of the new fiscal year 2025-26.
The government has a place to absorb the increase in prices of oil products by adjusting the petroleum tax. At present, consumers pay over RS77 per year. Liter of oil tax on diesel and gasoline. However, the government had adopted the way to increase the prices of oil products rather than save consumers from this increase.
Consumers were expected to have more increases in oil prices when the government had set an RS1.4 trillion income target due to petroleum tax, the highest in the country’s history. The petroleum tax revised target was RS1,161? Billions for fy? 2024–25.
In addition, the government had also imposed a carbon tax on oil products that would result in further increases in the prices of oil products.
