It’s June 2020; you are on your way back from school or university. You stop by a petrol station to get a fuel refill for your ride. They ask you for Rs. 75 per litre of petrol. You pay and get back on the road with a smile on your face. Life is good.
Can you believe that was two years ago when petrol was under hundred rupees? Think about the current price of Rs. 210, and your head starts spinning.
But the real question is how did petrol go from Rs. 75 in June 2020 to Rs. 210 in June 2022? Let’s rewind the tapes and see what went wrong.
First Blow: Oil Shortage
The first massive hike took place on June 27, 2020, when the Petroleum Division increased the petrol price by Rs. 25.58. The world resumed its activities that month, which led to an oil shortage in the international market. Fuel prices went up in the global market, and the effect was soon realised in the local prices.
This post-COVID oil prices situation and dollar rate went up and down for more than a year. The Pakistani market had multiple price hikes, taking the petrol rate from Rs. 100 in December 2020 to Rs. 140 in December 2021.
Second Blow: Russia-Ukraine War
Just when the world was trying to get back on its feet, the geopolitical conflict between Russia and Ukraine brought it down on its knees. Russia, the world’s second-largest oil producer, cut ties with the European countries and worsened the energy crisis across the globe. As a result, the international and local fuel prices went up even further.
We received another massive petrol hike that took the rate from Rs. 147 to Rs. 160 in February 2022. However, the former government reversed the hike soon after and took the prices back to Rs. 150.
Third Blow: IMF Agreement
Pakistan went through a dramatic government shift in April 2022. Prime Minister Imran Khan lost the no-confidence movement and was replaced by Shehbaz Sharif. The new government played emotionally for a month, keeping the petrol prices unchanged and trying to portray a good image in front of the public.
The national treasury lost billions of dollars in petrol subsidies, and the government failed to get a bailout package from the International Monetary Fund. The IMF posed some conditions in front of the government, and one of those conditions was to end petrol subsidies and hike the petroleum prices.
And that brings us to the recent back to back hikes of Rs. 30 that got the petrol rate to Rs. 210 from Rs. 150.
That’s about everything that happened from June 2020 to June 2022 in a nutshell. Must have been painful to hear it all again, but the irony is this doesn’t end here. We are entering a black hole of inflation and recession.
What do you think about the whole petrol situation? Do you think the new government will be able to get us out of this chaos or push us further? How have you been holding up in this rage of inflation? Join the conversation and share your thoughts in the comments section.
And remember, whatever happens, folks, we are in this together!
Ma’am, don’t sensationalize your story with a hypothetical situation “imagine your self returning from school or university” like why your readers have to imagine something that they have witnessed just 2 years back. Secondly, talking with respect to Pakistan back in June 2020, schools and universities were either completely closed or having online classes. Most offices were working at 25% to 50% strength and markets were facing lockdown at 8 pm across country.
[ The new government played emotionally for a month ]
What is this line ?
The writer looks a totally biased PTI supporter. Seems like you don’t bother to read newspapers properly and your source of News is just PTI social media. Dont know you that the former Gov had an agreement with IMF in Nov 2021 and in Feb 2022 the former PTI government made a written agreement to increase petrol prices however didn’t execute its commitment for political reasons.
PW should have some sensible people in its team.