Reports are making rounds that the government will once again increase petrol prices from 1st Feb 2022. Various sources claimed that the prices of all key petroleum products are likely to go up by over Rs13 per liter from Feb 1 for the next fortnight.
They said the prices of petrol and diesel would go up by over Rs9 and Rs13 per liter, respectively, because of higher global oil prices.
To clarify, in the global Brent oil market on Friday, the price of crude oil reached a seven-year high of $90.59 per barrel. Moreover, the crude oil price in the WTI market gained $1.05, or 1.2 percent, to $87.66 a barrel.
Read more: Pakistan’s petrol prices go up to Rs8.14
As a result, petrol prices in Pakistan may also increase. Furthermore, the government has to increase the levy on petroleum products by Rs4 per liter as committed with the International Monetary Fund (IMF). In November 2021, Finance Minister Shaukat Tarin said the petroleum development levy should be increased by Rs4 per liter every month.
International Monetary Fund is reportedly pressing the federal government to hike prices of petroleum products by up to Rs15 per liter. According to media reports, the prices will be gradually hiked within the span of three months. #theCivileyes #Pakistan pic.twitter.com/LlJ5MAtHMq
— TheCivilEyes (@TheCivilEyes) January 29, 2022
Therefore, since the international petrol prices increased, and the IMF tax levy, the government will increase petrol prices again. The Finance Division may make the final decision on 30 January after getting a go-ahead from Prime Minister Imran Khan.
Currently, the per liter price of petrol is Rs. 147.83, high-speed diesel is Rs. 144.62, kerosine oil is Rs. 116.48, and light-speed diesel is Rs. 114.54.
Ehsaas petrol card in the works?
Owing to the steady increase in petrol rates, reports emerged that the government is looking into ways to provide relief to the public.
To clarify, Finance Minister Shaukat Tarin, chaired a meeting of the Macro-Economic Advisory Group (MEAG) at Finance Division to discuss the issue.
One participant of the meeting told the media that they discussed ideas to support the middle class against high inflation. The meeting considered proposals like subsidized fuel and tax reliefs.
Read more: Get discounted petrol using PTI’s Ehsaas card
As a result of this report, there are speculations that the government will launch a scheme for subsidized fuel. The scheme will be similar to the successful Ehsaas Sehat Card which provides subsidized healthcare to the public.