Commerce minister anticipates 'good news' on petrol prices on October 1

Caretaker Minister of Commerce and Industry Dr Gohar Ejaz stated on Saturday that he was optimistic that the country would receive “good news” regarding gasoline prices on October 1 when the government will likely announce revised petroleum rates.

He spoke to the media in Karachi, where he attributed the rise in inflation to a weakening rupee.

He explained that as a result, the cost of all imported goods, including energy and petrol, have skyrocketed.

“Last year, the rupee was at 160 and this year, it reached 305,” he stated.

“The local currency is currently stabilising, and … on [October] 1, I am hopeful that you will hear good news regarding the price of gasoline,” he added, adding that he was also optimistic about lower energy prices.

The rupee has regained momentum in recent weeks, owing to a nationwide crackdown against illegal exchanges and smugglers of currencies by authorities.

Apart from the government’s administrative measures, the State Bank of Pakistan (SBP) also announced structural reforms, directing commercial banks to establish their own ECs as fully-owned subsidiaries.

Rates in the inter-bank and open markets are now firmly close to each other, reducing the premium that is one of the structural benchmarks of the International Monetary Fund (IMF) programme.

The caretaker setup has significantly hiked the price of fuel in recent weeks.

The interim government has linked the cost increase to the global trend in the price of petroleum products and the depreciation of the Pakistani rupee.

The increase in petroleum prices has greatly alarmed many, especially those who are already experiencing the effects of inflation.

The high cost of fuel is expected to have an influence on people’s daily lives by increasing the cost of transportation, necessary commodities, and services.