16 Feb 2023

Pakistan: Petrol Diesel Prices Climb To A Record High; Costlier By Over Rs 50/Liter In A Month

Islamabad: Petrol-diesel prices in Pakistan have reached a record level. The government has increased petrol by Rs 22 and diesel by Rs 17 from Thursday. 

After this hike, petrol cost Pakistan Rupee (PKR) 272 per litre whereas high-speed diesel (HSD) will sell for PKR 280 per litre in the cash-strapped nation. Kerosene and light diesel oil, on the other hand, will sell for PKR 202.73 per litre and PKR 196.68 per litre respectively

In this way, petrol became costlier by Rs 58 and diesel by Rs 53 in the last one month. On January 16, the price of petrol was Rs 214.80 and the price of diesel was Rs 227.80.

The Finance Division of Pakistan has attributed the record hike in the prices of petrol and diesel to the fall in the Pakistani currency (Rupee). At present there is a huge crisis of foreign exchange in Pakistan. This is affecting imports and exports. Inflation is increasing. 

Govt proposes to hike goods and services tax to 18%

The government has proposed to hike goods and services tax to 18 percent. This move is aimed at raising PKR 170 billion in revenue to tackle the ongoing economic crisis.

The increase in oil prices was expected. Tt was among the conditions set by the International Monetary Fund (IMF) for releasing crucial financial aid. However, this will lead to a further spike in inflation. IMF has set strict conditions for the loan. 

In Pakistan even essential items are now selling at extremely high prices. For instance, a litre of milk is selling at PKR 210, while a kilo of chicken costs PKR 700-800. Prices of other basic commodities such as wheat, pulses and vegetables also remain high.

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