ISLAMABAD: Pakistan is expected to witness a significant increase in petrol and diesel prices as the government prepares to announce revised petroleum rates, raising concerns over a further rise in the cost of living.
The anticipated increase comes after a sharp rise in international crude oil prices, driven by recent geopolitical tensions between Iran and the United States, which have pushed global energy markets higher.
According to media reports, the new fuel prices, expected to take effect from July 18, could see high-speed diesel (HSD) become costlier by as much as Rs40 per litre, while petrol may witness an increase of up to Rs10 per litre.
In order to soften the blow on the consumers, the government is likely to decrease the levy charged on petroleum but no official announcement has yet been made.
On the other hand, the authorities have taken a firm decision to impose stern action on hoarders and the creation of artificial shortages of petroleum products. This has been done following the report on the matter by the National Committee on Monitoring and Coordination, which has directed the Oil and Gas Regulatory Authority (OGRA) to take immediate legal action.
The government has asked related ministries to ensure a smooth flow of petroleum products within the country in order to avoid any disruption in the market and safeguard the interests of the consumers.
According to economic analysts, volatility in international oil prices, especially during times of political turbulence, still remains a huge hurdle for the importers of oil, including Pakistan.
Furthermore, they have said that although curbing hoarders is an appropriate step, securing energy resources in the future would depend more on making investments in alternative sources of energy.
The government is expected to announce the revised petroleum prices later today.
