International oil prices have doubled
Petroleum products are likely to become more expensive in Pakistan from July 1 following a rise in the price of crude oil in the global market.
The price of crude oil, which was $20 per barrel in the world market two months ago, has risen to $41.18 per barrel, showing an over 100% increase in the commodity’s price.
The international price of oil has been volatile since the COVID-19 pandemic gripped the world. This period also saw a historic low in the international price of oil when it dipped below zero.
In Pakistan, the volatility in international prices of oil turned into an oil crisis as several oil companies stopped selling petrol and long queues were seen at the few pumps where the fuel was available.
Economist Dr Waqar says in the budget, the government has announced that it will be fixing the petroleum levy at Rs30 per litre while an additional 17% sales tax and freight margin will also be imposed.
OGRA will send a summary of the prices to the government by the end of this month after which the prices are expected to be revised.