Petrol prices are going to rise soon, and inflation will increase as well.
Due to the Iran and Israel war or conflict, the prices of petrol are going to rise massively. In the morning today, the crude oil price touched USD 80, which is the highest this year, and it was seen last year that the crude oil price was this high. Iran is also threatening to stop the blocking of oil flow by blocking the Strait of Hormuz, which will automatically create a shortage of oil of 20% to 30% globally. Due to the Iran and Israel conflict, people are going to feel the pain of inflation via petrol price increases, which could be 10% to 20% globally, including in Pakistan. This will impact common people, including the elite in Pakistan, as expensive petrol prices mean that travel costs are going to increase, as well as other items.
Petrol prices contribute overall to inflation, which will increase prices of all items globally, including in Pakistan. Moreover, Pakistan is facing the issue of high prices and low salaries; therefore, Pakistan may be the worst country that would be affected by the petrol price. In Pakistan, prices of goods never reduce, and the trend in Pakistan is to only increase prices. Even the State Bank of Pakistan has stopped reducing interest rates in Pakistan due to the Iran-Israel war, as they also expect that in the near future, Pakistan will also witness an increase in inflation. Additionally, Pakistan's bigger issue is the current account deficit, as Pakistan did not see the growth as expected. Still, the import figures raise a worry sign and showcase there are no reforms to tackle this issue. It is expected that petrol prices in Pakistan may touch PKR 300 or above in the near future.
