Petrol price to go down after ‘decline in dollar value’. Murtaza Solangi, the interim information minister, alluded to a drop in fuel prices in the next fortnight’s review, which is due for September 30 as the Pakistani rupee appreciated sharply versus the US dollar.
In response to a news story, the information minister told the media on Saturday at the Karachi Press Club that administrative actions done by the interim administration in recent days had caused the rupee to appreciate by $30 to $35 versus the dollar.
He was alluding to the government’ crackdown on hoarders, currency smugglers, and black marketeers that was supported by the military after the rupee hit a historic low of Rs. 308 in interbank trading and went above Rs. 330 in the open market earlier this month.
As Petrol price to go down after ‘decline in dollar value’, the crackdown has considerably aided the rupee’s recovery, taking it to 291.76 against the dollar in the interbank market, its best level since September 5.
Since then, the currency has increased by 5%, or Rs 15, thanks to dollar inflows from exporters and remittances as well as policies adopted by the central bank to boost legitimate foreign exchange channels.
“There are enough chances that the oil prices will be reduced in the next [fuel prices] announcement,” the minister said adding that the interim government has no role in fuel prices as they are linked with international oil rates.
“[…] people will get some benefit of reduction in the value of the dollar,” he remarked.
The caretaker administration increased the price of petrol by more than Rs. 26 and the price of diesel by more than Rs. 17 per litre during the previous weekly review on 16 Sept., bringing fuel costs to an all-time high.
Currently, high-speed diesel costs Rs329.19 per litre and petrol costs Rs331.1 per litre.
Malik Bostan, the chairman of the Exchange Companies Association of Pakistan (ECAP), voiced optimism earlier this week that the country’s remittances may rise by 10–20% in light of the government’s campaign against dollar hoarders, black marketeers, and smugglers.
Speaking to The News, he claimed that as a result of the crackdown, foreign exchange companies, which previously received $5 million per day on average, are now receiving $15 million, a 200% increase. He claimed that the interbank and open market dollar rates had significantly decreased for the same reason.
He promised that the dollar would drop down below Rs. 250 if the crackdown persisted.
According to Bostan, the campaign against hoarders, black market traders, and money smugglers has also shown a connection between black marketeers and bank employees.
He said that various banks’ lockers held enormous sums of money that were utilised for hawala/hundi by bank workers working with black marketeers.
According to Bostan, the keys to these lockers were kept by unscrupulous bank employees, who used to trade US dollars illegally after receiving messages from concerned black marketers.
