Pakistan to Hike Petrol Prices as Economic Turmoil Persists

Pakistan is anticipated to raise petrol prices because the country faces severe economic problems. The upcoming increase in power tariff is owed to the increasing global crude oil prices especially due to the current Middle Eastern conflict. As a result, this move is likely to exert more pressure on the country’s economy and its citizens, the middle and lower classes.

Global Oil Prices and Dependence of Pakistan

Increased foreign oil prices have led the government of Pakistan to propose an increase of PKR16.54 per litre in petrol price and PKR42.99 per litre in diesel price. This decision has been made also taking into consideration that Pakistan relies on imported oil by more than 79 per cent. Markets are volatile around the globe and this poses high risks with Pakistan facing high supply disruption risks.

From time to time, it has been observed that Pakistan has been on the receiving end of international oil market shocks, for instance Suez crisis in 1956 and the Gulf crisis. The current scenario has raised the need for the development of Pakistan’s energy mix and the need to decrease the country’s reliance on imported oil for future sustainability.

Consequences to the Citizens and the Economy

The proposed price increase is likely to cause deep concern among middle and lower-income earning persons within Pakistan due to current economic hardship. Currently, the price of petrol is PKR816.85 and diesel PKR856.54, and this will only add more pressure on the consumer. This is especially so bearing in mind that the country continues to grapple with issues of climate change and economic hardship.

Relatively, almost all the fuel prices in Pakistan are much higher than its neighboring country India where Petrol and Diesel cost approximately PKR330.71 and PKR297.64 respectively. This proves that Pakistani citizens suffer from economic problems and require a viable solution for the energy and economic crisis.