As dreadfully expected, the government has increased the prices of petrol and diesel prices. Finance Minister Miftah Ismail announced the updated prices at a press conference near the middle of the night along with State Minister for Petroleum Musadik Malik.
Here are the updated petrol prices in Pakistan.
|Old Price (PKR)||New Price (PKR)||Increase (PKR)|
|High Speed Diesel||204.15||263.31||59.16|
The new prices have come into effect from today: 16th June 2022. This is the 3rd raise within the last 20 days. It should also be noted that it is more than Rs84 per litre jump in these 20 days.
Miftah Ismail said during the press conference,
If we don’t increase oil prices, the country could face a default.
Mr. Minister further said, the government has also been facing a loss of 120 billon rupees on gas prices every month.
This is an incredible jump, and downright extorting. Considering the increase in petrol prices, it will get increasingly difficult for people with humble backgrounds to survive off of this. One aspect is that people are going to significantly reduce their daily usage of motor vehicles. And also people will now start to downgrade to smaller vehicles, whether cars or motorcycles, to curb their spending on commuting.
One thing that most private car owners are neglecting is the increase in the price of diesel. Private car owners are only seeing it from their own perspective, but the fact is that the increase in diesel price is going to be far more impactful on the lives of the people in general in the worst way. All goods across the country are being transported in diesel powered vehicles. And with the increase of almost Rs60 per litre, the prices of commodities are going to increase exponentially. That means your everyday consumables are going to get expensive and in return people are going to spend less than usual. This is going to narrow the economic spending cycle significantly as the disposable income gets spended on maintaining the lifestyle instead of using it for buying extra luxury items.
Let us know what you think about the fuel prices in the comments section below.