The recent surge in petroleum product prices in Pakistan has left citizens grappling with increased expenses, prompting a closer examination of the factors driving this unwelcome trend.
Experts point to global market fluctuations and domestic energy dynamics as key reasons for the ongoing price hikes.
In a stark numerical contrast, Pakistan exports 90% of its petroleum products with only 10 percent being produced domestically.
At the heart of the issue lies the continuous escalation of global petroleum prices, which has a direct impact on the local market.
Pakistan's heavy reliance on imports for the bulk of its petroleum products means that even slight changes in the international oil market can have profound effects on the nation's fuel prices.
In 2014, the nation boasted reserves of 387.49 barrels, but this figure has dwindled to a mere 92.91 barrels this year.
Furthermore, the number of active oil wells has seen a significant drop from 100 in 2014 to just 47 today.
The growing chasm between petroleum demand and domestic production is a cause for concern.
Another pressing issue facing Pakistan's energy sector is the reluctance of international oil extraction companies to operate within its borders. The primary reason behind this hesitancy is non-payment by the government, which has led to a discouraging trend where, since 2010, 11 companies have shut down their operations in the country.
This has further exacerbated the gap between petroleum supply and demand.
Despite these challenges, it's worth noting that compared to neighboring countries, Pakistan's petroleum product prices remain relatively low. However, addressing the rising costs of petroleum products requires a multifaceted approach.
