Chances are that petrol prices will increase for the month of August following the devaluation of rupee against the dollar. On Monday the rupee hit a record low at Rs 128 against the dollar in the interbank market. When the market opened the dollar rose up to Rs 126, then went slightly down to Rs 125.50 before rising up to Rs 128.
Must read: Rupee currency weakens against the US dollar
Now we will come to the effects of the rupee devaluation against the dollar. Everytime Pakistani rupee’s value has declined, fuel prices have increased and the automakers have further raised the car prices, making life terrible for the consumers.
Initially, for the month of July, the caretaker government increased the petroleum prices. The prices of petrol were increased Rs7.54 to Rs99.5, Kerosene price was increased by Rs3.36 per liter to Rs87.7, High-Speed Diesel (HSD) price was increased by 14 rupees per litre to reach Rs 119.31.
After making this decision, the federal government of Pakistan was forced to reduce the fuel prices due to immense public pressure. The petrol price was reduced by Rs4.26 per litre to Rs95.24, high-speed diesel price was reduced by Rs6.37 to Rs112.94 and kerosene process was reduced by Rs3.74 to Rs83.96.
But what will happen now? Pakistan Elections 2018 are approaching, which means a new government in the country. Can we expect a relief for the public regarding ever-increasing fuel prices or the prices will continue to increase keeping in mind the condition of rupee against the dollar? Furthermore, in 2018 the leading automakers increased the car prices thrice. Will the sharp decline of rupee against the dollar compel automakers to increases car prices for the fourth time? How will it affect the economy of the country? And more importantly how will the public cope with it?