To meet the International Monetary Fund’s (IMF) conditions, the government has unleashed another big gasoline bomb on the country after another hike of Rs30. In less than a month, the price of petrol has risen by Rs60 to Rs209.86.
The latest petrol price hike came just hours after the National Electric Power Regulatory Authority (NEPRA) approved a power tariff hike of Rs7.91 per unit.
In an attempt to save money, a large number of people rushed to nearby petrol pumps to fill up their tanks before midnight. Numerous two-wheelers, as well as sedans and full-fledged SUVs, formed long lines outside gas stations.
Several traffic bottlenecks were observed in key areas of Lahore, Karachi and Islamabad due to long queues of automobiles.
Netizens expressed their displeasure on social media platforms, alleging that petrol had become out of reach for the general public.
Despite hefty price increases that would unleash a strong wave of inflation, Pakistan is still far from reaching an agreement with the IMF which requires a budget agreement for fiscal year 2022-23.
Petrol now costs Rs209.86 per litre, high-speed diesel (HSD) costs Rs204.15, kerosene oil costs Rs181.94 and light diesel oil costs Rs178.31, thanks to the rise.
The Finance Minister, Miftah Ismail went on to say that the government is holding talk with the IMF on a daily basis. “We cannot accede to all of their requests, but we must agree on certain aspects”.
He insisted that the petroleum subsidy announced by former Prime Minister Imran Khan had to be rescinded to avoid financial losses.
Journalist Kazmi Wajahat described the chaotic scene outside gas stations just before the higher rates went into effect at 12 am.
The decision to remove the gasoline subsidy should have been made sooner, according to economists, who also warned that the worst is still to come.
One-unit price of electricity has increased from Rs16.91 to Rs24.82 as a result of the new raise. The hike has been reported to the federal government by Nepra. According to a statement, the increased tariffs will take effect after the government issues its final notification. Recent hike in tariffs has been attributed to the rupee’s depreciation and increased oil prices on the foreign market.
