The Finance Minister of Pakistan, Ishaq Dar, announced a significant increase in the prices of petrol and diesel in response to the devaluation of the rupee against the dollar. The prices of kerosene oil and light diesel oil were also increased by Rs18 per liter.
The devaluation of the rupee sparked widespread speculation that the government would raise fuel prices, causing temporary shortages and hoarding at petrol stations.
The government was urged by the Oil & Gas Regulatory Authority (OGRA) to implement the new prices immediately to prevent further shortages and speculation.
Minister Dar explained that the prices of petrol and diesel had not been increased in the past four months and had even been decreased by Rs19 to Rs20 per liter.
The increase in fuel prices is a result of the 11% rise in international petroleum prices and the devaluation of the rupee.
Despite the increase, Prime Minister Shehbaz Sharif determined that a minimum price increase was necessary to address the fiscal deficit and balance the budget.
The Minister hopes that this decision will dispel rumors about the shortage of petrol and ease the concerns of the public.
In conclusion, the recent hike in fuel prices in Pakistan is likely to have a significant impact on the economy and the poorest segments of the population.
The government’s decision to raise prices is aimed at addressing financial challenges, but its effectiveness remains to be seen.