Pakistan Economic Crisis: Petrol & Diesel Price Hits Record High

Pakistan Economic Crisis: Pakistan on Wednesday night hiked up the prices of petrol, diesel and gas to a historic high in a bid to appease the International Monetary Fund (IMF) for unlocking the critical loan tranche. The hike in petrol and gas prices came into effect on February 16, 2023.

According to a recent Pakistan Oil and Gas Regulatory Authority (OGRA) notification, gas prices have been hiked from 16 percent to 113 percent for different sectors including domestic consumers. Petrol cost PKR 272 per litre whereas high-speed diesel (HSD) will sell for PKR 280 per litre after a hike of 17.20 rupees in the cash-strapped nation. On the other hand, Kerosene will sell for PKR 202.73 per litre. Meanwhile, light diesel oil will be available at 196.68 rupees per litre after an increase of 9.68 rupees.

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The increase in the price of petroleum products was one of the preconditions of the Washington-based lender, which will lead to a hike in the already record-high inflation, coupled with the new fiscal measures undertaken through the ‘mini-budget’. Through the ‘mini-budget’, the Pakistan Democratic Movement (PDM)-led federal government aims to reduce the budget deficit and broaden its tax collection net.

Inflation is expected to go up in Pakistan after the petrol hike, the ‘mini-budget’.

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