Changes in oil prices in Pakistan, which are spurred by fluctuations in the global demand, are governed by a complex set of rules that is shown in the recent notification declaring no change in oil prices for the next fortnight in the country.
The rapid increase in oil prices is directly proportional to the market volatility, which is impacted by the hot war between Russia and Ukraine and geo-political tensions vitiating relations among different nations.
Some of the rules have been enumerated in the fresh notification, which are: In exercise of the powers conferred by Section 6(2) of Oil and Gas Regulatory Authority Ordinance, 2022, and clause (4) and (4A) of Section 2 of the Petroleum Products (Petroleum Levy) Ordinance 1961, rule 3, sub rule (1) of rule 6 and rule 7 of Petroleum Products (Petroleum Development Levy) Rules 1967 read with the Ministry of Energy (Petroleum Division) SRO No 254(1)/2006, dated March 15, 2006, and in supersession of the Oil and Gas Regulatory Authority’s notification SRO No 2335(1)/2022, dated December 31, 2022, Oil and Gas Regulatory Authority does hereby, in respect of the petroleum products, refined by the refineries in Pakistan and imports… So complex sounds the set of rules.
However, the petrol prices will remain unchanged for the next 15 days announced by the Finance Minister Ishaq Dar on Sunday is tantamount to the satisfaction for the consumers digging hard in the ongoing economic meltdown.
In Pakistan, two fundamental goods, petrol and diesel are generally accounted for the majority of revenue collection and constant revisions in their prices in successive governments have always directly impacted country’s revenue receipts.
The changes in oil prices have raised serious concerns among the policy makers around the world because of its adverse impact for the net-oil importing economies like Pakistan remain very serious.
With no increase till the end of this month, the price of petrol, diesel, light diesel and kerosene will remain at Rs 214.80, Rs 227.80, Rs 169 and Rs 171.83 per litre, respectively.
Fuel prices have been hovering at record levels high over the past few months owing to instability in global market.
As the country experiencing unprecedented high inflation and skyrocketing food prices, the latest decision of the federal government to keep the petroleum unchanged will prove a sigh of relief for the common man.
Already, the price of certain essential items have been ruling high in the country for the past few months, however, the latest decision pertaining to oil prices is likely to calm the situation.
It has been reported by the mainstream media outlets that the decision for keeping the existing prices of petroleum products unchanged in the local market was taken under the special directives of Prime Minister Muhammad Shehbaz Sharif to provide relief to the common man, particularly the lower income groups, and ensure the provision of fuel at household level on affordable prices to meet the winter requirements.
Riding on the back of the military tensions and the economic slowdown, the government needs to allow a relief to the people, who are reeling under the impact of the price volatility. Any relief that is not proportional to the dearness of all essential commodities of life will deepen the economic woes of the people.
