Petroleum prices in Pakistan are poised for a notable decline, offering a sigh of relief to consumers thanks to the ongoing recovery of the local currency against the US dollar. Interim Information Minister Murtaza Solangi made this significant announcement during a press conference held at the Karachi Press Club on a sunny Saturday morning.
Solangi attributed this promising development to the recent resurgence of the Pakistani rupee, which has strengthened significantly from Rs. 30 to Rs. 35 against the US dollar. This surge in the rupee’s value is a direct consequence of the vigorous crackdown launched by the interim government against black market dealers and smugglers over the past few days.
The military-backed campaign targeted hoarders, currency smugglers, and unscrupulous black market dealers after the rupee experienced a historic low, plummeting to Rs. 308 in the interbank market and surpassing Rs. 330 in the open market earlier in the month.
The rupee has rebounded to a formidable position at 291.76 per dollar in the interbank market, reaching its highest level since September 5. It has shown remarkable appreciation, strengthening by Rs. 15 since that low point.
This remarkable turnaround can be attributed to increased dollar inflows from exporters, remittances, and the concerted efforts of the central bank to promote legal channels for foreign exchange transactions.
The minister emphasized that while the interim government does not directly control fuel prices, the forthcoming reduction in oil prices is a direct consequence of the robust rupee revival, and it promises to provide a much-needed respite to the populace.
The previous fuel price revision, which took place on September 16, witnessed petroleum prices in Pakistan reaching historic highs, causing significant concern among consumers. Presently, petrol is priced at Rs. 331.1 per liter, while high-speed diesel is available at Rs. 329.19 per liter.
Malik Bostan, Chairman of the Exchange Companies Association of Pakistan (ECAP), also expressed optimism that the government’s crackdown on currency-related malpractices would further fortify the rupee’s position, potentially bringing it below Rs. 250 per dollar.
Bostan further revealed that the crackdown had unveiled illicit collaborations between black market operators and banking personnel, leading to the unlawful trading of dollars through hawala/hundi channels.
In summary, the recent resurgence of the Pakistani rupee against the US dollar, resulting from a vigorous government crackdown, has paved the way for anticipated declines in petroleum prices in Pakistan, offering much-needed relief to consumers.
This upward trajectory of the rupee, fueled by increased dollar inflows and regulatory efforts, holds the promise of economic stability and reduced fuel costs for the nation.