Crisis-Hit Pakistan faces another hike in Petrol and Diesel prices; Rate increases to over Rs 300

Islamabad: Pakistan, grappling with severe economic challenges, has announced yet another increase in petrol and high-speed diesel prices due to the escalating trend of petrol prices in the international market, as stated by Pakistan’s Finance Ministry in an official release.

The petrol prices have surged by Pakistani Rupees (PKR) 26.02 per litre, and high-speed diesel witnessed a hike of PKR 17.34 per litre, marking the second significant increase in just two weeks. Consequently, petrol in crisis-stricken Pakistan will now be retailed at PKR 333.38 per litre, while high-speed diesel will cost PKR 329.18 per litre.

Earlier this month, petrol prices in Pakistan breached the PKR 300 threshold for the first time in the nation’s history. The relentless rise in petrol and electricity prices stems from recent economic reforms, triggering historic levels of inflation and soaring interest rates, putting immense strain on the populace and businesses.

Notably, a $3 billion loan program, sanctioned by the International Monetary Fund (IMF) in July, prevented a sovereign debt default in Pakistan. However, reforms associated with the bailout have led to annual inflation soaring at an alarming rate of 27.4%.

Also Read: No Bilateral Cricket Matches With Pakistan Until It Stops Terrorism: India’s Sports Minister

The deteriorating economic situation, coupled with escalating political tensions in the run-up to the scheduled national election in November, has sparked sporadic protests in recent weeks. Caretaker Prime Minister Anwaar-ul-Haq Kakar mentioned earlier this month that citizens would have to bear inflated bills as there is no alternative viable option.

“When you subsidise, you shift your fiscal obligations to the future. Rather than addressing the issue, you just delay it,” he explained to reporters in Islamabad.