Amid reeling economic crisis, Pak govt hikes petrol price for next 15 days

Pakistan's finance minister, Ishaq Dar, revealed on Saturday that the federal government has decided to raise the cost of petrol by Rs 10 per litre for the ensuing 15 days, Geo News reported.

High-speed diesel, and light diesel oil rates remained stable, whereas the price of petrol increased to (PKR) 282 per litre. Kerosene oil's price is also increased by (PKR) 5.78 per litre.

The Finance Division explained the increase in petroleum product prices in a statement by citing "increased petroleum costs in the international market and currency rate variance."

Pakistan is in the middle of a deep economic crisis amid steep currency devaluation and interest rates hikes with its major debt sustainability indicators witnessing marked deterioration during the first half of this fiscal year, according to the semi-annual debt bulletin of the finance ministry, reported The Express Tribune.

Inflation for March 2023 clocked in at 35 per cent, which is amongst the highest-ever levels. For the more vulnerable segments, inflation is close to 50 per cent, as food prices spiral out of control, reported The News.

The catastrophe is occurring as the administration makes little progress towards securing a staff-level agreement (SLA) for the restart of a stalled IMF bailout. Importantly, the persistent decline of the rupee and historically high food prices are fueling high inflation rates.