Petroleum products are likely to become more expensive in Pakistan as of July 1, following a rise in the world market price of crude oil.
Crude oil prices, which were $20 per barrel on the world market two months ago, have risen to $41.18 per barrel, reflecting an increase in commodity prices of more than 100 percent.
Since the COVID-19 pandemic seized the planet the international oil price has been unpredictable. Also, this period saw a historic low in the international oil price when it plunged below zero.
In Pakistan, volatility in international oil prices turned into an oil crisis as many oil firms stopped selling petrol and at the few pumps where the fuel was available, long queues were seen.
Economist Dr. Waqar says the government has declared in the budget that it will fix the petroleum levy at Rs30 per liter, although it will also introduce an additional 17 percent sales tax and freight margin.
By the end of this month, OGRA will give a review of the prices to the government after which the rates are supposed to be revised.