Petrol prices again up in Pak as currency depreciates amid economic crisis

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Amid the ongoing economic crisis, petroleum prices in Pakistan have again increased as the country’s currency depreciates. The value of its local currency has recorded a significant decline over the past year. The rupee crashed by 57% during the last year to PKR 280.77 to the dollar on March 10, 2023.

The increased petroleum prices have come into effect today, March 16, 2023. Experts had earlier said that petrol prices would go up for another fortnight, that is, 16 March to 31 March, owing to significant depreciation in local currency.

According to a report by pkrevenue, the price of MS (Petrol) has been increased by ₹5 per litre, and price of High-Speed Diesel (HSD) is up by ₹13 per litre. The price of kerosene oil has also been hiked by ₹2.56 per litre, however, the price of light diesel oil has been kept the same.

On the other hand, the report also stated that the crude oil prices in the international market witnessed a sharp decline. Despite the Russia-Ukraine war, the prices of benchmark Brent crude oil recorded around 30% decline during one year, that is, the price was $115 per barrel during last March 2022 and it fell to $83 in the current month of March 2023.

Notably, the crisis-hit country has increased petrol prices second time this year, to appease the International Monetary Fund (IMF) to unlock the $1.1 billion funding for economic recovery.

The IMF loan delay is costing the nation massive depreciation of the local currency and an immense increase in energy prices in Pakistan.

Pakistan, the country which is struggling with its worst economic crisis in decades, has implemented a series of policy measures including increased taxes, higher energy prices, and increasing interest rates to the highest in 25 years to unlock funding from its stalled IMF $6.5 billion loan program.