The outcome of the devaluation of Rupee against US dollar in the domestic market is now getting apparent. There has been a rise in the crude oil prices in the global market, thus Oil and Gas Regulatory Authority (OGRA) will most likely increase petrol prices by Rs 10 for January 2018.
Due to the fall in Rupee value, the economy of Pakistan has suffered and so OGRA has given recommendation to the federal government to increase petroleum products’ prices
As per sources the recommendation given by OGRA is to increase prices of petrol by Rs5.20 per litre, high-speed diesel (HSD) by Rs4.50, light diesel oil (LDO) by Rs6 per litre and kerosene oil prices by Rs10 per litre.
If the prices get approved by the federal government, the new prices will be applicable from January 1st 2018.
Along with devaluation of Pakistani rupee the prices of crude oil in the international market has seen an increase in December month by $2 per barrel.
When the central bank withdrew its support on December 13th, Pakistani rupee suffered a huge blow, badly effecting the currency. Pakistani rupee has always remained between the range 104-105 per dollar since 2015, but in last three sessions it lost its value by over 5%.
Therefore now Pakistani public will bear the consequences of this issue as most likely the oil and gas prices will go up.