Petrol Price in Pakistan yesterday completed its first triple century, a historic moment indeed, although a negative one. The shocked masses have no idea how to react to this news as they are already burdened and crushed by the historic high inflation. In a notification, the Finance Division of Pakistan blamed international prices and volatile exchange rates for the fresh jump, but the question arises: Are there any other reasons behind this “achievement.” Let’s dive a bit deep into it.
USD’s Race Against PKR
The first reason is obviously the rabbit-paced run of the US dollar against the sleepy-walking turtle called the Pakistani rupee. The data shows that USD cost PKR. 291 on August 15, the date of the last fuel price hike, compared to PKR. 305 on August 31, the date of the fresh petrol bomb. A jump of Rs. 14 in a matter of a fortnight is undoubtedly huge and tends to impact the petrol price in Pakistan.
PDL Jump
Then there is the Petroleum Development Levy (PDL), which was expected to see a rise, like every other commodity and tax, and this is precisely what the caretaker government did. As tweeted by business reporter Shahbaz Rana, the government has ” increased the tax on petrol to the maximum of Rs60 per liter.” Sadly, Picture Abhi Baqi Hay Meray Dost as Rana added that there is also a 10% Custom Duty on Petrol. Consumers are now paying more than Rs85 per liter tax. “
“As a result, Petroleum prices in Pakistan, for the first time, have crossed Rs300 per liter. The new petrol price is Rs305.4 per liter. It will not stop here,” he concluded.
Interim Government has increased the tax on petrol to the maximum of Rs60 per liter. There is also 10% Custom Duty on Petrol. Consumers are now paying more than Rs85 per liter tax.
As a result, Petroleum prices in Pakistan for the first time have crossed Rs300 per liter. New…
— Shahbaz Rana (@81ShahbazRana) August 31, 2023
As mentioned by Mr. Rana, the story doesn’t end here because Abhi Ishq K Imtehan Aur Bhi Haen and reason, you may ask? The dollar is still moving towards the top floors on a lift, while PKR is trying to match it via stairs, meaning there is no match, hence, no respite for the masses. The previous government’s short-sighted political and economic policies have brought the country to this place, and interestingly, they would not face this music of inflation, the metal rock one, actually. However, the people would be in this nonstop loop of a crusher machine fueled by the petrol price.
What is your take on the recently increased petrol price in Pakistan? Share your thoughts in the comments section.
