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Diesel Price May Rise Above Rs. 200/Liter

The diesel price may cross Rs. 200 per liter, for the first time in the history of Pakistan. The main reason for this is record-breaking crude prices on the international market, as well as the decline in the value of the rupee in comparison to the USD. US dollar.

Trouble ahead as traders warn of global diesel shortage - Nairametrics

According to media reports in the second fortnight this month, which begins on April 16 Federal government officials will be faced with two options, either ramp up prices by an amount of. 60.54 per liter, or raise the subsidy in order to keep the current price. If the government decides to raise the price the per-liter price of diesel could be as high as the amount of Rs. 204.69.

In February, the former Prime Minister Imran Khan announced an Rs. 10 reduction in diesel and petrol prices, while also freezing the rates of petroleum products until the next budget. On April 1st, Finance Division stated that the government would be liable for an additional cost of an additional amount of Rs. 33 billion over the course of a fortnight (1-15 April 2022) to maintain the price at their current level.

In the meantime, sources say that the government in power is hesitant and may not raise prices to gain public support. If the government chooses to keep the price, it would be required to pay an additional amount of Rs. 30 billion in subsidies from April 16 until. Therefore, it will bear the cost of the equivalent of Rs. 60 billion to keep the prices of oil constant.

Subsidy on Petrol Price

However, the government will need to raise the price of petrol by approximately Rs. 24.1 per liter, or offer an amount of subsidy to keep prices at the same levels for the following fortnight. The government also has to offer a subsidy of the equivalent of Rs. 38.41 per liter of Kerosene oil (KO) and an amount of Rs. 39.56 per liter on Light Diesel Oil (LDO).

It appears that the currently in power government has landed itself in a difficult situation as it needs to make a difficult choice. The government can either increase prices or offer a subsidy in order to win the support of the public.

Do you think that the government should increase prices, or not? Tell us your opinion in the comment section.

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