Islamabad:
Prime Minister Shehbaz Sharif has formed a 16 members committee to monitor the impact of volatility on oil prices following Israel’s attack against Iran, an important oil producing country.
A notification issued Friday by the Ministry of Energy said there has been a sudden increase in oil prices in the international market after the start of the Israel-Iran conflict.
According to the notification, the Committee, which will be convened by the Minister and Finance, includes oil, Ministers of Energy, Minister of State for Finance and the Governor of the State Bank.
The Committee will closely monitor the prices of oil products close to futures and the predictability of the supply chain in view of the current conflict in the region.
It will also determine the implications of Forex of pricing volatility for the short and medium term and will suggest a plan if necessary, to ensure that there are no supply interruptions and that the market is well supplied.
It will also carry out a detailed analysis of the fiscal impact, in case of a prolonged conflict. The committee can co -opt any other member as necessary for the fulfillment of their mandate.
“The oil division will provide secretary support to the Committee. The Committee will present its recommendations weekly for the reading of the Prime Minister,” he added.
Fuel prices
Consumers prepare for another increase in fuel prices, since estimates suggest that high -speed gasoline and diesel rates (HSD) can increase in the next biweekly review, largely driven by an increase in international oil prices.
According to official sources familiar with the price structure, gasoline is expected to see a marginal increase around RE1 per liter, while the price of high -speed diesel could increase by approximately RS5 per liter.
The changes would be applied from June 16 to 30, and the final decision will be taken based on the calculations of import costs on June 15.
At present, the ex-depot price of gasoline is RS252.63 per liter. Widely used in motorcycles, rickshaws and private cars, any change in the price of gasoline significantly affects the expenses of average and low income groups.
Meanwhile, HSD’s ex-refot price is RS254.64 per liter. Diesel feeds most of the heavy transport sector of Pakistan, including trucks, buses, tractors and agricultural machinery, such as trillators and subway wells.
Given its wide use in agriculture and load, an increase in the price of diesel generally triggers inflation in food supply chains.
