Pakistanis felt the pinch as the government on Thursday hiked consumer prices for diesel and petrol sharply, its second increase in less than a month, amid rising global oil prices spurred by the conflict in the Middle East.
The price of diesel was raised by 54.9 percent to 520.35 rupees ($1.88) per liter, and petrol by 42.7 percent to 458.40 ($1.65) rupees per liter.
It was inevitable to raise the prices due to the international market prices going out of control after the US-Iran war, Pakistan’s petroleum minister, Ali Pervaiz Malik, said in a news conference telecast on state television, along with the country’s finance minister.
“The decision taken today is that, in line with international market trends, the price of petrol will be increased, with the new rate set at Rs458.40 per liter effective tomorrow,” he said.
“At the same time, efforts have been made to keep any increase in diesel — which is critical for farmers and public transport — to a minimum, with its new price set at Rs520.35 per liter.”
Malik said the government had given a subsidy of 129 billion rupees in the last three weeks, but it was no longer affordable due to the hike in international oil prices.
Lahore resident Mohammad Haris said they feel “crushed.”
“Whatever good the government had done was undone after the outbreak of the Iran war,” he told Reuters. “Under pressure, they raised petrol prices, and the poor man has been crushed.”
Karachi resident Mohammad Kashif said the price hike was an “injustice.”
“If people have to buy petrol at Rs460, how will they feed their children at home? How will they run their households and cover their expenses? And if they live in rented accommodation, how will they pay the rent? This is an injustice to the public,” he said.
“The way people are being fleeced is unacceptable; instead of shifting its burden onto the public, the government should have borne some of it itself.”
Last month, the South Asian nation raised consumer prices for diesel and petrol by about 20 percent, citing higher oil prices driven by the US-Israeli war on Iran.
The decision is likely to ripple through to higher inflation and hit Pakistan’s impoverished population. Pakistan imports oil mainly from Saudi Arabia and the UAE through the Strait of Hormuz.
US oil prices jumped more than 11 percent on Thursday, while Brent soared over 7 percent in volatile trading a day after US President Donald Trump said military operations would be intensified.
“Alright, there may be a war going on, but shouldn’t we also think about our people? Petrol has reached Rs460 per liter — what is a poor man supposed to do? Someone earning Rs20,000–25,000 a month relies on his bike for work,” said another resident Kaif Ahmed.
“What will he do now? All his money goes into petrol; he has three children, and there’s hunger at home — his family is going without food.”
