Rising Petrol Prices in Pakistan
January 9, 2009 Leave a comment
So I got this message today.
Rising Petrol Prices
The price of petrol in the international market is hovering around US$36 a barrel. Now one barrel contains 210 liters of petrol. Which means a price of US$0.17 per liter in a barrel. Now as Pakistani Rupee today is around 80 rupees to a dollar, that translates into PKR 13.60 per litre in a barrel.
Now adding the price for refining and taxation, it comes to around PKR 25. However, the price set by Oil and Gas Regulatory Authority (OGRA) is PKR 57/liter in the country. Is that not excessive profit taking by oil companies in Pakistan? Is that not another sign that the PPP government led by Asif Zardari is failing its citizens by not curbing and controlling the oil companies? The uncontrolled rise in oil prices in the country has caused an inflationary trend with commodities like milk, salad, meat and other such basic items costing two to three times more than a year ago.
Would be interesting to read comments on what others think on this pricing model.
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