as widely anticipated due to the upward trajectory of global oil prices. Although the appreciation of the rupee against other currencies may have a positive influence on petroleum prices, it is insufficient to counterbalance the impact of surging global oil prices, according to industry experts cited by The News.
— Ministry of Finance (@FinMinistryPak) September 15, 2023
According to Reuters, oil prices reached a ten-month peak on Friday, driven by Saudi Arabian production cuts and optimism regarding Chinese demand. By 12:15 pm EDT (1615 GMT), US West Texas Intermediate futures had risen by 62 cents, or 0.7%, to reach $90.78 per barrel, while Brent crude futures had increased by 21 cents, or 0.2%, to $93.91 per barrel. Both benchmarks had reached their highest levels since November 2022 earlier in the session and had increased by approximately 4% for the week.
It’s important to note that the government routinely reviews and adjusts petroleum prices every two weeks based on recommendations from the Oil and Gas Regulatory Authority (OGRA). However, the final decision rests with the finance ministry, which occasionally absorbs a portion of the increase to alleviate the burden on consumers. Nevertheless, the government is compelled to raise fuel prices in accordance with its agreement with the International Monetary Fund (IMF) under a $3 billion standby arrangement.
