Significant increase in petroleum prices by caretaker government
The caretaker government, which assumed control not too long ago, is facing a significant test as it grapples with the formidable challenge of announcing a substantial surge in the prices of petroleum products (POL) later tonight.
This impending announcement can only be described as a bombshell, triggering concerns that the cost of petrol might breach the 300-rupee mark following a staggering increase of Rs9 per liter. Similarly, diesel prices are expected to surge by Rs16 per liter, while Kerosene Oil prices could jump by Rs13 per liter. Likewise, the price of Light Speed Diesel is also projected to climb by Rs9 per liter.
Refinery authorities attribute these potential price hikes to a confluence of factors. Notably, the US dollar has witnessed an extraordinary surge of Rs14.51 in the past two weeks, a development that has had a significant impact on the overall cost. Furthermore, the international market has witnessed crude oil prices surging past 85 dollars per barrel, further contributing to the anticipated rise in POL prices.
According to refinery officials, the interbank exchange rate for the dollar has now exceeded Rs304. This increase in the dollar's value holds ramifications beyond just the petroleum sector, as it is also expected to result in higher air travel fares.
In response to this situation, Caretaker Prime Minister Anwaarul Haq has convened a meeting at the PM House today. The meeting will address the escalating prices of both electricity and petroleum products, and it will be attended by key ministers responsible for finance, energy, petroleum, as well as relevant officials.
In conclusion, the caretaker government finds itself in a challenging position, tasked with navigating the complex landscape of announcing substantial hikes in petroleum product prices. The impending increases, fueled by factors such as fluctuations in the US dollar's value and soaring crude oil prices, are poised to have widespread effects on the economy, including potential fare hikes for air travel. As the government convenes to discuss the situation, it faces the crucial task of balancing economic considerations and public sentiment.