Pakistan's Fuel Price Surge: A New Fiscal Challenge

The Pakistan government has sharply raised fuel prices only weeks after cutting them for Eid ul Adha. The price hike coincides with the start of the new fiscal year and follows rising international oil prices. Finance Minister Aurangzeb cited the government's fiscal constraints and rising global petroleum prices as key factors.

Weeks after slashing fuel prices ahead of the Eid ul Adha festival, the financially struggling Pakistan government has sharply raised them, marking a tough start to the new fiscal year.

As per an official notification, petrol and High-Speed Diesel (HSD) prices were increased by Rs 7.45 and Rs 9.56 per litre, respectively. This comes on the heels of last month's reduction ahead of Eid ul Adha, where petrol and HSD prices were cut by Pakistani Rs 10.20 and Rs 2.33 per litre, respectively.

The Finance Ministry announced the increase late at night, attributing it to a rising trend in international petroleum markets. The new ex-depot petrol price from July 1-15 is Pakistani Rs 265.61 per litre, up by 2.9% from the previous fortnight, with retail prices exceeding Rs 266 per litre. The new HSD ex-depot price is Rs 277.45 per litre, up by 3.6%.

Despite Finance Minister Muhammad Aurangzeb's assurance on Sunday evening that the petroleum levy would not rise, the upward price adjustment was inevitable due to the increased ceiling in the budget. The Minister acknowledged the economic pressure on citizens while promising future financial relief for the salaried class.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)