Petrol-diesel has become costlier by 55 PKR/litre in Pakistan. The new prices are petrol 321.17 PKR and diesel 335.86 PKR. This increase has been due to the rise in international oil prices and IMF conditions. Now prices will change weekly.
Islamabad: Another big inflation bomb has exploded on Pakistan, which is already struggling with economic crisis. The government has suddenly increased the prices of petrol and diesel by 55 Pakistani rupees (PKR) per liter. This decision is like a crude bomb for Pakistan’s deteriorating economy. After this big increase, the new price of petrol in Pakistan will be 321.17 PKR per liter and the price of diesel will be 335.86 PKR per liter.
According to a report by ARY News, due to the sudden rise in oil prices in the international market, the government has had to increase the prices of fuel in the country. This decision has come at a time when there is turmoil in the oil markets due to tensions in West Asia and there is a fear of supply disruption. Amidst this increasing economic pressure, Islamabad has taken this step.
Why did prices increase?
According to Pakistan’s Deputy Prime Minister and Foreign Minister Ishaq Dar, there are two main reasons for this price increase. First, the situation in the Middle East has become tense after the alleged joint attack by America and Israel on Iran on February 28. The assassination of Iran’s Supreme Leader Ayatollah Ali Khamenei and news of Iran’s retaliation have affected the supply chain of the global oil market. The second major reason is the strict conditions of the International Monetary Fund (IMF). To give loan to Pakistan which is trapped in debt trap, IMF has directed to end the subsidy given on fuel and fix the prices as per the market rate.
Now prices will change every week!
The Government of Pakistan has decided that from now on fuel prices will be reviewed every week in view of the fluctuations in the global oil market. Due to this decision, the burden of inflation on the common people is likely to increase further.
Kilometer long lines at petrol pumps!
As soon as the official announcement of price increase was made, people in big cities like Lahore and Karachi flocked to petrol pumps. Kilometer long queues of vehicles formed. Prime Minister Shehbaz Sharif has warned of strict action against dealers creating artificial shortage. On one hand, countries like Poland are selling gold to buy weapons, while Pakistan is struggling for fuel. If the threat of closing the Strait of Hormuz turns out to be true, then the oil supplies coming from Saudi Arabia and UAE will come to a halt, which may worsen Pakistan’s condition.