Petrol prices in Pakistan are poised to hit a significant milestone as they approach the triple-century mark. The interim caretaker government is aligning its actions with the fiscal targets set by the International Monetary Fund (IMF).
Amidst the backdrop of an ongoing economic crisis, the population already grappling with challenges is bracing for yet another setback, with fuel prices expected to increase starting from September 1.
In a recent development, the Oil and Gas Regulatory Authority (OGRA) is contemplating a substantial rise of approximately Rs 12 per liter for petrol, while diesel is projected to experience a surge of Rs 14.83 per liter.
As the nation contends with widespread protests stemming from the steep escalation in electricity bills, the impending petrol price hike further exacerbates the situation, exacerbated by the local currency crossing the 300 mark against the US dollar in the interbank market.
Inflation across all commodity categories in Pakistan is anticipated to rise. Fuel prices are particularly vulnerable to a significant upswing in the upcoming review, given the volatility introduced by fluctuations in the local currency.
With the dollar exchange rate witnessing an increase of over Rs12, the abrupt shifts in this exchange rate are set to propel gasoline and diesel prices upward as the new month commences. In recent weeks, Pakistan has already witnessed a climb of Rs 37.50 in petrol prices and Rs 40 per liter in diesel prices.