Pakistan recorded an unprecedented increase in fuel prices on Thursday, marking a critical point in the country’s ongoing economic turmoil.
The government announced a 43% hike in petrol prices, now set at Rs458.40 per litre, along with a staggering 55% increase in diesel prices, which now costs Rs520.35 per litre.
This adjustment comes amid soaring global oil prices attributed to the ongoing US-Israel conflict in Iran, sending shockwaves through the nation’s already strained economy.
Addressing a press conference, Petroleum Minister Ali Pervaiz Malik, flanked by Finance Minister Muhammad Aurangzeb, detailed the increases, which totalled Rs137.23 for petrol and Rs184.49 for High Speed Diesel (HSD).
As part of the announcement, they mentioned a temporary three-month subsidy aimed at protecting lower and middle-income groups.
However, many seem unconvinced of the efficacy of such measures.
Former Finance Minister Miftah Ismail criticised the government’s decision, highlighting the dual tactic of raising the petroleum levy by Rs55 on petrol while simultaneously increasing petrol price by Rs79 per litre, resulting in a total increase of Rs134 per litre.
“And it keeps saying it doesn’t want to burden the people and wants to lift the burden itself,” said Ismail on X.
Social media has been abuzz with reactions from influential political figures and commentators.
Even PML-N’s own Khawaja Saad Rafique voiced grave concerns about the impact of the government’s policies.
“The sharp increase in the price of petroleum products has led to the worst wave of inflation. Government constraints are in place, but how will the common man survive ?????
While fulfilling the IMF, the poor will die, and the middle class will go below the poverty line,” warned Saad.
In a similar vein, Asad Umar, ex-finance minister, pointed out that fuel prices in Pakistan now exceed those in neighbouring India by 48% for petrol and 92% for diesel.
“The global price of oil has gone up sharply, but the reason for expensive petrol and diesel in Pakistan is unwillingness to tax the rich and powerful, and collect most of the tax from the working middle class,” he said.
Asad’s sentiment resonated with many as they echoed his thoughts online.
Notable columnist Ali Moeen Nawazish characterised the price hikes as potentially destructive for Pakistan, arguing that such policies would lead to irreversible increases in people’s cost of living.
“This war will end sooner rather than later, but once prices go up on everything from food, groceries, transport etc…. they are not coming back down even when oil does eventually come down!
“This is not a prolonged oil shock… it is a supply issue, which thankfully Pakistan doesn’t even have… because our ships are getting through…” he noted.
Adding to the debate, journalist Wajahat Kazmi addressed public queries regarding why the government continues to raise prices when Pakistani tankers are allowed to navigate the Strait of Hormuz, clarifying that access does not translate into discounts.
“Passing through the Strait of Hormuz doesn’t entitle Pakistan to any discounts. We have to buy crude oil at international prices, which are very high,” he said.
Although Pakistan has little to do with the rise in international oil prices, the country, especially its citizens, would have to bear the brunt of it.
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