News Update: – 21st April, 2020
The crash in oil prices is an excellent prospect for countries like Pakistan because even after passing 50% of the drop to patrons, the government can reimburse for the lower revenue. The News reported on Tuesday that Qatari gas will be cheaper than domestic gas.
Furthermore, the International market showed that there’s a chaotic overnight meeting in crude oil marketplaces which saw the U.S crude oil commodities plunge to below $0 for the first time in history.
While, the collapse in oil prices on Monday morning was as devastating as the prevalent, as US oil prices fell to a range of one to two dollars a barrel when this report was acquiesced.
Moreover, the Brent crude charges also hovered around $22-25 a barrel, the lowest in 22 years. The glut of the price war between Saudi Arabia and Russia has been impaired by the very low demand for oil in most developed economies.
In the meantime, how Pakistan can take advantage of this circumstance is by connecting and manufacturing electricity from gas-fired power plants as it will also decrease significantly. Furnace oil rates will be lower than coal. It will be an opportunity to simplify our energy and energy sector while this opportunity continues.
Additionally, the low oil prices will also give the government a chance to compensate for the huge losses in proceeds that it agonized before and after the prevalent. It will definitely allocate some of the benefits of this low price to consumers enough to satisfy them. It can continue balance by boosting the oil tax and pocketing no less than 800 billion rupees of this tax, which will be 400 billion rupees higher than the government profits allocated from this item.