Alert: Petrol Prices May Increase From 1st July 2020

Petrol prices are expected to increase from July 1st, 2020 and it is not good news at all. This is a result of the rise in crude oil prices in the international market. Couple of months ago, it was being sold at $20 per barrel but after the price hike, it will be sold at $41.18 per barrel. This is basically a 100% increase in its commodity price.

The outspread of coronavirus has jolted almost every industry. There has been fluctuations in petrol prices since the pandemic has hit the world. History was made when the prices fell down so much so that in the United States, they were below 0.

The destruction of the supply chain significantly affected Pakistan’s auto industry. The government stopped its import after the drop in the prices. This has caused an oil crises in the country. There can be long lines of people at petrol pumps who have stopped giving petrol because of the shortage.

Announcement About The Petrol Prices:

Economist Dr Waqar said in the budget, “The government has announced that it will be fixing the petrol prices at Rs30 per litre while an additional 17% sales tax and freight margin will also be imposed.” OGRA is expected to send a summary of the prices by the end of this month. Government will probably revise the prices after that.

ALSO READ: Toyota Increases The Prices Of Its Cars, Again

Fuel Investigation After The Crises

This crises made the federal government to carry out an investigation. A fuel investigation committee was formed. There was a disturbing revelation that 9 Oil Marketing Companies (OMC) were guilty of hoarding oil. A penalty of Rs. 40 million was suggested by the investigation company for these companies. The committee also mentioned in the report that the licenses of these companies should be revoked, and the officials should be arrested and charged with stocking and black marketing of fuel.

The investigation committee visited the oil depots of these companies. Ample stock of fuel was found. Even then, these Oil Marketing Companies didn’t supply it to retailers. The committee stated, “However, these companies pocketed huge profits earlier, when prices went up in the global market”.

We are hoping that this crises can be dealt with, so we see better days.

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