Petrol prices are just out of control! There is no schedule for increasing the costs, and they tend to rise every fortnight, resulting in everything getting expensive overnight and inflation out of control.
In Pakistan, just like many countries, the prices of petroleum products have been affected due to a lot of reasons. Some significant factors influencing this price increase are the cost increase of crude oil, profit margin, refining costs, taxation, and other marketing costs.
In developing nations like Pakistan, the price of petroleum majorly depends upon the financial stability of the economy of Pakistan and the rules and regulations set by the government. The developing nations may subsidize fuel prices to give a certain level of relief to the general public of the country.
Uncontrollable Petrol prices in Pakistan
A lot of Asian countries like India, Indonesia, China, Bangladesh, and Malaysia have come up with subvention tools and a unique kind of management system to monitor and control petrol prices. Some of these countries also provide fuel subsidies to their citizens in their annual budget in order to provide relief. Unfortunately, Pakistan has not set up any such kind of management system or measures to control the unprecedented price hike.
The federal government of Pakistan has invested millions in providing subsidies and managing fuel prices, yet it lacks the resources to provide fuel subsidies.
The economic meltdown and political instability have also contributed to this unrealistic price hike of petroleum products. The political unrest in the country has led to drastic changes, which the public is suffering on a daily basis now.
The following kind of petroleum products are available in Pakistan.
- Petrol (Super and Hi-Octane)
- Diesel (High Speed and Low Speed)
- Liquid Petroleum Gas (LPG)
- Kerosene
- Compressed Natural Gas (CNG)
High-speed diesel and petrol (Super and Hi-Octane) are the major petroleum products in Pakistan, as they are used in abundance across the country. The government earns massive revenue from these two products mainly.
Even with the soaring prices, the quality of petroleum products is very low as compared to other countries in the region. Pakistan started importing high-quality petrol, having a higher Research Octane Number RON, 92 back in 2016, which has made its path through the masses, yet the quality is not of the same level as other countries.
De-stabilization of petrol prices in Pakistan
The prices of petroleum products in Pakistan have been unstable since the coronavirus pandemic. This has been the same across the glove. The oil and gas regulatory authority OGRA is responsible for maintaining and stabilizing the petrol prices in the country. Yet, it has been unsuccessful in doing so in the past couple of months.
The petrol price hike is directly proportional to everything getting expensive for the masses. The economic and political instability is not letting the prices settle down in one place.
Conclusion
The petrol prices are out of reach at the moment and as the inflation increases in the country, so do the petrol prices. The only way to curb this scenario is by bringing political stability to the country and giving relief to the citizens by providing subsidies.
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