More Fuel Hike In Pakistan Causes Jitters

 

Pakistan caretaker government announces another hike in fuel prices, petrol reaches over ₹330 per litre Amid the high prices of fuel prices in Pakistan, the caretaker government has announced yet another hike in the prices of petrol and diesel which took it to a historic high – over ₹330 per litre, reported PTI on 16 September.

Following clearance from caretaker Prime Minister Anwaarul Haq Kakar, the Ministry of Finance announced the price hike of petrol by ₹26.02 and diesel by ₹17.34 per liter on Friday night.

Following the hike, the petrol and high-speed diesel (HSD) are costing over ₹330 at the filling stations, reported The Dawn, saying, it its ‘a psychological barrier that has been crossed for the first time in the country’s history’.

Putting an unbearable burden on the masses, the fuel price hike comes on the heels of over a 27.4 percent increase in the rate of inflation in August. Both petrol and HSD are used by all private and public service vehicles.

“Owing to the increasing trend of petroleum prices in the international market, the government has decided to revise the existing consumer prices of petroleum products,” the ministry said. Earlier on 1 September, the caretaker government had jacked up the petrol and diesel prices by over ₹14. Since 15 August, the rise is on top of ₹32.41 and ₹38.49 per liter increase in petrol and HSD prices.

The combined increase now works out at ₹58.43 and ₹55.83 per liter within one month. Petrol and diesel have become costlier by 20 percent since the caretaker government took over in August.

Though no GST is charged on petroleum products, the government charges ₹60 per liter petroleum development levy (PDL) on petrol and ₹50 each on HSD under the commitment with the International Monetary Fund (IMF). As part of the $3 billion bailout program for nine months to support the government’s efforts to stabilize the country’s ailing economy, the IMF transferred $1.2 billion to cash-strapped Pakistan in July.

For the last many years, Pakistan’s economy has been in a free fall mode, bringing untold pressure on the poor masses in the form of unchecked inflation, making it almost impossible for a vast number of people to make ends meet.   BY CAPITAL NEWS