When the already vulnerable masses are bearing the brunt of recent crude shocks observed in the last two weeks, the Kakar-led interim government is all set to increase petrol prices in the next fortnight’s review, thanks to a fresh wave of rupee devaluation.
As per the media reports, petrol prices in Pakistan are expected to jack up by Rs. 13 in the coming review due on 31 August. Not surprisingly, the reason behind this calamity is that the Pakistan rupee continues its losing streak to drop to a fresh all-time low against the US dollar. This means there are only six days left to witness new record high fuel prices in Pakistan.
Reasons & Repercussions
Earlier, the incumbent government raised petrol price by almost Rs. 40 in the last two fortnight revisions, taking it to the historic high of Rs. 290.45. The reason behind these jumps was, first, to support the International Monetary Fund (IMF) program and then an uneven surge recorded in the international oil market.
This time, when the mighty dollar has just marked a whopping triple century against the Pakistani rupee, the exchange rate would be held responsible for the fresh increase in fuel prices.
Moreover, Industrial sources predict that if the acquisition of crude oil and petroleum products occurs at increased US dollar rates, there is potential for another upsurge in the prices of gasoline and diesel during the initial two weeks of September.
If it happens, it would unleash a cascade of economic repercussions, leaving the masses grappling with the burden of escalated living costs. The impact of these soaring petrol rates extends beyond just the fuel pump, seeping into various aspects of daily life and amplifying the challenges faced by an inflation-stricken segment of society.
What do you think about the upcoming jump in petrol prices? Drop your thoughts in the comments section.
