Petrol prices in Pakistan fluctuate every month as the Oil Companies Advisory Committee recommends prices following international oil prices. Pakistan spent $13.93 billion dollars on imports classified under the petroleum group in FY 2019. Approximately 57% of petroleum oil is used for transport.
As per a statement by a spokesperson of Shell Pakistan, an abrupt increase in petroleum demand was one reason behind the depletion of their stocks. However, OGRA contends that there was no shortage of petrol in the country. As per the federal cabinet, OMCs pocketed windfall gains when oil prices were high but were reluctant to bear losses when prices went down.
To read more, download the PRIME note given below:
Policy Note on petrol crises in pakistan