New Delhi: As the war in the West Asia continues unabated, Pakistan on Thursday implemented a steep increase in consumer prices for diesel and petrol.
This was the second such hike in less than a month as global oil prices are increasing due to the conflict in the Middle East.
Diesel prices will be increased by 54.9% to 520.35 rupees ($1.88) per litre, and petrol by 42.7% to 458.40 rupees per litre, Reuters reported.
Speaking in a news conference telecast on state television, Pakistan’s petroleum minister, Ali Pervaiz Malik, said: “It was inevitable to raise the prices due to the international market prices going out of control after the US-Iran war.” Pakistan’s finance minister was also present during the conference.
Pakistan had increased consumer prices for diesel and petrol by around 20% last month. It had then cited higher oil prices triggered by the US-Israeli war on Iran.
How the move will impact the population
The move is likely to raise inflation and put more strain on Pakistan’s already impoverished population. The country depends heavily on oil imports, essentially from Saudi Arabia and the UAE, transported via the Strait of Hormuz.
During the conference, Muhammad Aurangzeb, the country’s finance minister, announced subsidies to provide relief to marginal farmers, motorcyclists and intercity transportation of goods and passengers.
What Pak’s petroleum minister said
Malik said the government had given subsidies worth 129 billion rupees over the past three weeks, but these were no longer sustainable due to steep increase in international oil prices.
He added: “Since the resources are limited and there is no end to this war in sight, there was no way to continue with a blanket subsidy.”