Islamabad (LTN NEWS): On July 31st, the government will most likely lower the price of gasoline. The significant drop in the price of oil on the world market has led many industry analysts to conclude that Pakistan’s price of gasoline should have been reduced by Rs25 per liter much earlier.
The evaluation of gas prices is scheduled for the 31st of July.
At this time, one liter of petrol costs 230.24 rupees, while a liter of diesel costs 236 rupees.
The recent drop in the price of oil on the worldwide market has led many industry professionals to the conclusion that the price of gasoline in Pakistan ought to have been reduced by Rs. 25 per liter rather than remaining the same.
However, the government will be unable to pass on to consumers in the country the benefits of reduced prices of petroleum products because the rupee’s downward spiral against the dollar is continuing unabatedly, and the local unit has been making new historic laws on a daily basis for the past couple of days.
On the interbank market, the local currency fell to a new low as compared to the US dollar, which continued to rise for a ninth straight session. The value of the US dollar on the interbank market ended the day at an all-time high of Rs236.02, up from Rs232.93 a day earlier. This represents a decrease of Rs3.09 or 1.31 percent.
Since July 15, 2022, when it ended at roughly Rs211, the value of one dollar, measured against one rupee, has increased by Rs25.
It is important to point out here that the depreciation of the exchange rate would deprive customers of any gain in terms of the reduction in the costs of petroleum products in the next two weeks. It is necessary to emphasize this fact here.
A high-ranking employee of an oil business said that, according to the company’s calculations, the price of gasoline should have dropped by Rs25 per liter between the 14th and the 26th of July, and there is also the possibility that the price of diesel might have dropped to some degree.
“The exchange loss might push up the prices of diesel and petrol in the coming fortnight along with an increase in the petroleum levy (PL) under the condition put in place by the IMF”, the official said.
The price of a barrel of crude oil on the international market was approximately $103 at the time, while the price of a barrel of gasoline was approximately $100 and the price of a barrel of diesel was approximately $120.
According to him, “based on these prices, it was possible for there to be a fall in local oil costs as long as the exchange rate was constant.”
He pointed out that the final price would be determined when the government would also consider the exchange loss of Pakistan State Oil (PSO) for the import of crude and petroleum products. He said that this would happen before the final price was determined.
According to him, the lack of dollars in the local market has also produced problems, as the oil import letters of credit are currently settling at over $240 on the market. This indicates that the shortage of dollars has contributed to the troubles.
