If the recent surge in petrol price has shattered your routine budget or evidently left you in something of a daze; if you are thinking that it might be the last hike taking the price to a new high, you are barking up the wrong tree. Tighten your seatbelt! Brace yourself for a new crude shock this month that would nicely take the price to the highest in the country’s history.

The Surge

Media reports informing the possible price jump in petrol prices ranging from Rs. 12 to Rs. 22 for the last fortnight of August are swirling around. Similarly, a potential increase of Rs. 20-22 per litre in diesel prices is also among the considerations. As per the reports, industry experts disclosed the reason behind the soaring fuel prices stating that a steep rise in international oil prices could nudge the incumbent government to take further step.

Earlier this month, in an uneven press conference, the finance minister Ishaq Dar announced a jump of Rs. 19.95 in petrol prices bringing it to a whopping Rs. 273 per litre. And this move was taken as per the conditions of International Monetary Fund (IMF).

Reports revealed that prices of refined products in international markets are jacked up by Rs. 13$ per barrel in the last 15 days, taking it to the 111$ per barrel. Whereas during the same period, petrol prices have observed an uptick of Rs. 7$ per barrel, making the new price 97$ per barrel.

The repercussions of these recent and potential price hikes have the potential to profoundly influence the inflation figures for August. Should inflation exceed projections, there’s a likelihood that the central bank might find itself obligated to raise its primary interest rate come September.

What do you think about the upcoming hike in petrol prices? Tell us in the comments section.