The government has reduced the levy on petrol from Rs6.39 per liter to Rs4.74 per liter. Previously, the maximum levy was priced at Rs15 per liter but it has now been raised to Rs30 per liter. This means the impact of Rs1 rise in petrol price causes inflation to increase by 4 bps,” explains Arsalan Hanif, Analyst at Arif Habib Limited. A major concern for the current government is to tame rising inflation. Generally, richer countries have higher fuel prices, whereas poorer countries and countries that product and export oil have cheaper fuel prices.

Source: Pakistan Today May 18, 2021 15:22 UTC