Petroleum Prices In Pakistan Increased By 20% Against 85% Surge In World Market: Energy Expert

ISLAMABAD, (UrduPoint / Pakistan Point News - 29th Sep, 2021 ) :Renowned energy expert and senior economy analyst Muzamil Aslam Wednesday said the government had increased the petroleum prices by 20 percent against the 85 percent surge witnessed in the international market during the one year and nine percent in the last month.

"Petrol prices in Pakistan as compared to other regional countries are still cheapest," he said in an interview with APP.

He said the economic crisis came along Corona pandemic had shaken the global economies.

When Coronavirus surfaced in 2020, he said the economies around the world suddenly came to the halt and petrol prices fell to a record level of zero Dollar per barrel.

As economies began to open up, Muzamil said the prices jumped to 80 dollar per barrel on September 29.

Drawing the comparison, he said during the last one year, global oil prices had increased by 85 percent, gas prices by 180 percent and coal by 2 percent.

In the last one month, oil prices had surged by 10 per cent, while gas and coal prices by 30 per cent, which hit economies like Pakistan, as well as the economies of the United States, Europe and China.

He said the gas prices in the United States had increased by more than 180 percent and were likely to rise further in the winter as gas was used for heating.

The expert said long queues were witnessed at fuelling stations in London two or three days ago, adding prices were going up in across the Europe from Spain to Italy.

Muzamil said China had announced regular load shedding and had asked factories to reduce or shutdown the production as coal supply had affected there.

He said the United States had asked Organization of the Petroleum Exporting Countries(OPEC) to increase production, while Europe requested Russia to increase gas production and China asked Australia and Indonesia to increase coal shipments.

Narrating the international energy scenario, he said the Pakistan Tehreek-e-Insaf (PTI) government had increased oil prices by just 20 per cent in one year against 85 percent increase in the global market.

"Not only petrol is the cheapest in Pakistan as compared to regional countries, but the electricity prices were last raised by government in February." He said at a time when even the richest countries of the world were increasing the prices of electricity, petrol and gas, how long an oil & gas importing country like Pakistan should keep the prices low.

"If you keep prices low, you will borrow because in my view today's relief is tomorrow's tax," he added.

At this time, Muzamil said it was necessary that what was being obtained from outside, its price should be collected from the consumers. The government should provide cheap electricity and gas to the poor and compelled people only, he maintained.

He was of the view that petrol prices should go up by three to four per cent at this time because in the last fortnight the rupee had fallen by two and a half percent against the dollar and this one month oil prices had increased by 9 percent in the world market.

If the government raised this price, he said nothing would go to the national exchequer as it was alreadylevying a 10.5 per cent sales tax on oil and a petroleum levy of Rs 5 instead of Rs 30.