KARACHI: The hike in petroleum prices is the most talked about topic these days. There are lot of assumptions about it, especially the carbon levy, raise in existing petroleum levy imposition of 18% GST, etc., said Ateeq ur Rehman, economic & financial analyst.

He said the federal government is contemplating to raise petroleum prices by up to Rs.10 per litre, effective from 1st April 2024. The recent flow in petroleum prices is attributed to an increase of $12.15 per barrel to $13.50 per barrel; thus making a $1.45 per barrel increment.

Whatever is the cause of the proposed raise, it is a financial burden with on general public. It will also result in a sharp rise on inflation. We see a direct effect of it on cost of doing business, increasing of cost of production and increase in cost of by products like plastic, polymer, chemicals, paraffin wax, bitumen, lubricating oil and many others. It has a total compound effect on economy, added Ateeq.

Copyright Business Recorder, 2024

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