Pakistan: Fuel prices touch record high, drive country down a dark abyss

Petrol prices in Pakistan rose to 272 Pakistani rupees (PKR) on Thursday, a historic high. Diesel prices were hiked by PKR 17.20 to PKR 280 per litre. In inflation-hit Pakistan, the move is expected to push citizens in more trouble. Pakistan-based publications report that the decision to hike prices was taken after the Shehbaz Sharif-led government tabled a tax-loaded mini budget in the Pakistan National Assembly that hiked goods and services tax to 18 per cent to raise PKR 170 billion. 

Notably, the petrol and diesel prices have been hiked in the inflation-hit nation in a bid to appease the money-lending firm, International Monetary Fund (IMF) to deliever the critical loan tranche. The hike in oil prices was among the preconditions of the IMF to revive the $7 billion extended fund facility (EFF) to Pakistan. 

Apart from the fuel price hike, the price of kerosene has also been increased by PKR 12.90 to PKR 202.73. Meanwhile, the light diesel oil price has soared to PKR 196.68 per litre after a hike of PKR 9.68. According to officials, the prices come into effect from 12 am on Thursday, February 16. 

Citizens already battling inflation

Prices of essential items have already been hiked several times in the country with milk costing PKR 210 per litre and meat being sold at PKR 780 per kilo. According to an official statement released by the Pakistan Oil and Gas Regulatory Authority (OGRA), gas prices have also been raised for several sectors including domestic consumers. 

The recent hike in oil prices is expected to take the country deep into inflation where every item will see a surge in price. According to sources, the government has held several rounds of talks with the IMF to release the bailout fund as it only has reserves to meet exports for only three weeks.