The new massive increase in petrol and diesel prices will send inflation through the roof, testing the masses already grunting under the historic burden of hardship.
By Muhammad Ali
ISLAMABAD: The authorities Friday jacked up petrol and diesel prices by PKR 26.02 and PKR 17.34 a litre respectively, adding to the burden of economic hardship facing the masses.
According to a pert announcement put out by the Finance Division late Friday, motor spirit (petrol), retailing at PKR 305.36 per litre since September 1, will sell for PKR 331.38 per litre starting Saturday. High Speed Diesel (HSD), retailing at PKR 311.84 per litre, will now sell for PKR 329.18 per litre.
The revision of pump prices was necessitated by increasing international fossil fuel prices, the announcement said.
The move is certain to unleash a massive new wave of inflation and price hike, testing the limits of endurance of the masses already grunting under the burden of historic economic hardship. It will also likely feed inflation expectations, upsetting the central bank’s plans to the contrary.
UPDATE: Not that this is any consolation to the citizenry already struggling under the staggering burden of inflation, but the hikes in the pump prices of fossil fuels announced by the Pakistani authorities late Friday are slightly less steep than the gain scored by Brent crude prices over a roughly corresponding period.
Between August 31 and September 15, Brent crude prices soared by 10.72 percent. This is clearly steeper than both the petrol and diesel price hikes in Pakistan – jacked up from their September 1 levels with effect from September 16 – respectively by 8.52 percent and 5.56 percent.
Brent crude prices that stood at USD 84.73 as of August 31, 2023 have continued their upward trend ever since, clocking in at USD 93.81 on September 15. This represents a gain of 10.72 percent.
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