Fuel prices jump to record high in Pakistan as economy dwindles

Petrol and diesel prices in neighboring country Pakistan has hit a record high as the newly sworn-in caretaker government raised fuel prices by up to Pakistani Rupees (PKR) 20 per litre, Dawn reported. This is the second massive price hike in the country in a fortnight as the economy dwindles. The new price of petrol is PKR 290.45 per litre, effective from today, after an increase of PKR 17.50 per litre.

Diesel has become even more expensive, with its price going up by PKR 20 to be retailing at PKR 293.40 per litre. The Ministry of Finance announced the revised prices late in the night after clearance from caretaker Prime Minister Anwaarul Haq Kakar, who was sworn earlier this week.

The ministry attributed this decision to the rise of petroleum prices in the international market during the last fortnight. However, there was no change in the prices of kerosene and light diesel oil, as per the government notification.

The outgoing government of Pakistan had made similar hikes in fuel prices, meaning that the prices of both the fuels have gone up by nearly PKR 40 per litre in just 15 days. When compared to prices of these motor fuels in the country about a year ago, price of petrol now stands 24% higher and 35% higher than its lowest point over the past year, as per government data.

Though the general sales tax on all petroleum products is zero in Pakistan, the government is charging a petroleum development levy of PKR 55 per litre on petrol and PKR 50 per litre each on HSD and high-octane blending component. It is also charging PKR 18-22 per litre customs duty on petrol and high-speed diesel.

In India too, fuel prices have seen a steady rise over the past few years, though there has been no revision on the prices since last few months.