● Lets talks about the reasons behind the rising petrol prices day by day as we all know, in 2019 there was an outbreak of a deadly virus like Coronavirus which was spreading very fast among the people and was causing deaths. In which all the countries decided to impose lockdown in their respective countries, due to which the people of most of the countries were in isolation in their own homes. In these three years, due to this corona, lockdown and isolation, there was no special use of petrol in the world, due to which Pakistan and all the countries were not facing shortage of petrol or inflation but when people in all countries returned to life after being vaccinated and taking precautionary measures against the coronavirus, the lockdown was ended so that people could resume their jobs and children could resume their education. So the need to use petrol in their lives started again but remember that due to the coronavirus the economies of all the countries had collapsed a lot and when there is a difference in the economy of any country, then there is also a difference in the price of petrol of that country. So petrol prices will also have to be increased to run the government because if the prices of petrol and other commodities are not increased then the debt on this country will continue to increase.
● The price of oil has risen by more than 70% over the last 12 months, from 45 dollars per barrel of Brent in June 2017 to nearly 80 dollars in May 2018. So, after three years of low prices, crude oil has returned to levels not seen since late 2014.
Price have risen as more vaccinated populations are brought out of coronavirus lockdowns, supporting a revival in economic activity.
● Another major reason for the rise in petrol prices in Pakistan is that Pakistan does not have the machinery and capacity to extract petrol from Pakistani workers even though Pakistan has gas reserves and this is a matter for many people. It is also known but due to a small deprivation Chinese workers and machinery come to Pakistan to extract petrol and their machinery which is used to extract petrol and the laborers who extract petrol in return for 50% of Pakistan Petrol goes to China and the remaining 50% of crude petrol goes to Pakistan.
Demand and supply gap :
The law of supply and demand states that if supply goes up, then prices will go down. If demand goes up then prices will go up.
If supply increases and demand remains unchanged, then it leads to lower equilibrium price and higher quantity. If supply decreases and demand remains unchanged, then it leads to higher equilibrium price and lower quantity.
Increase in dollar rate:
Petrol Prices in Pakistan - Oil prices fluctuate around the world, affecting the price of petroleum in Pakistan. After analyzing pertinent issues, government administrations in Pakistan, such as OGRA (Oil and Regularity Authority of Pakistan) and the Ministry of Pakistan, propose modifications in oil pricing. The Dollar rate in Pakistan also affects the price of petroleum in Pakistan. Prices typically fluctuate at the start of each month.
10 November 2021 Pakistani Petrol Prices - Oil prices change globally, affecting the price of petroleum in the country. After analyzing pertinent factors, government authorities in Pakistan, such as the OGRA (Oil and Regularity Authority of Pakistan) and the Ministry of Pakistan, propose changes in oil pricing. The Dollar rate in Pakistan affects the price of petrol in Pakistan. Prices frequently fluctuate at the beginning of each month.
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