Source reported that the price of petroleum products may not benefit the public due to a dramatic increase in the dollar’s value.
The price of diesel will drop by 34 rupees per liter in the coming two weeks, reports say. The government is scheduled to review petroleum product prices today.
A significant decrease in domestic petroleum product prices could result from the falling international price of crude oil if the government passes on the benefits.
Insiders in the oil industry are concerned that the government will not pass on the losses caused by the drop in global prices, which has forced the industry into a financial crisis.
Oil companies may be discouraged from passing the burden onto end consumers if their losses are not corrected as a result of the strong exchange rate swings during the past several months.
Diesel
Within two weeks, diesel prices will drop by Rs34 per liter at the ex-refinery. Fuel exchange losses exceed Rs100/litre, however. To make up the remaining exchange losses, the government may reduce diesel prices by Rs. 15 to Rs. 20 per liter.
Petrol
The price of gasoline is expected to decrease by Rs13-14 a litre, based on its ex-refinery pricing in the next fortnight. Additionally, government assistance may be limited to Rs. 4-5, while adjusting the rest of the price reduction.
Dollar Price
A significantly skewed exchange rate currently benefits the dollar. It is difficult for the government to reduce the cost of petroleum products on the domestic market.
Among estimates from the oil industry, the exchange rate used to calculate the ex-refinery price is Rs283. Government officials have been urged to improve the industry’s fairness and transparency, while Pakistani oil companies have continuously asked the government to resolve exchange losses.
