Petrol surges to record high of Rs 330 per litre in Pakistan, prompts protests

In the midst of soaring double-digit inflation, Pakistan's interim government has once again increased the prices of petrol and diesel, reaching an all-time high of over 330 Pakistani Rupees (PKR) per litre. This move has sparked immediate protests and legal challenges.

As of Saturday, the exchange rate stood at $1 equaling 296.41 Pakistani Rupees.

On Friday night, Pakistan's Ministry of Finance announced a significant price hike, raising petrol prices by Rs 26.02 and diesel prices by Rs 17.34 per litre.

Record fuel prices

Following this hike, the cost of petrol and high-speed diesel (HSD) at filling stations has surpassed Rs 330 per litre, marking an unprecedented milestone in the country's history, as reported by the Dawn newspaper.

This fuel price increase comes on the heels of a staggering 27.4 per cent rise in the inflation rate in August, placing a heavy burden on the general population, given that petrol and HSD are essential for both private and public transportation.

Earlier on September 1, the caretaker government had increased petrol and diesel prices by over Rs 14 per litre. This recent increase comes on top of the Rs 32.41 and Rs 38.49 per litre hikes in petrol and HSD prices since August 15, resulting in a 20 per cent increase in their costs since the interim government took office in August.

Price hike backlash

The rise in petrol and diesel prices has triggered strong criticism from Pakistan's opposition parties. Additionally, a judicial activist has challenged the increase in the Lahore High Court.

The Jamaat-e-Islami (JI) has vehemently rejected the substantial petroleum price hike and announced sit-ins outside the governors' residences in all four provinces of Pakistan. JI's chief, Sirajul Haq, accused the government of making life miserable for ordinary citizens by increasing petrol prices, allegedly under pressure from the IMF.

Sardar Abdul Rahim of the Grand Democratic Alliance also expressed opposition to the increase, arguing that the agreement between the consortium Pakistan Democratic Movement (PDM) and the IMF has proven detrimental to Pakistan's economy.

In Lahore, advocate Azhar Siddique, head of the Judicial Activism Panel, has filed an application in the Lahore High Court, naming the caretaker federal government as a party. The petitioner highlighted the absence of a mechanism to determine product prices and warned that the rise in petroleum product prices would trigger a new wave of inflation.

The Finance Ministry has attributed the rising trend in international petroleum prices as the reason for adjusting the existing consumer prices of petroleum products.

The government imposes a Rs 60 per litre petroleum development levy (PDL) on petrol and Rs 50 per litre on HSD as part of its commitment to the International Monetary Fund (IMF).

In July, the IMF disbursed $1.2 billion to financially strained Pakistan as part of a $3 billion bailout program spanning nine months, aimed at supporting the government's efforts to stabilise the country's ailing economy. Pakistan's economy has faced significant challenges in recent years, placing immense pressure on the disadvantaged population due to unchecked inflation.

(With PTI Inputs)