Petrol price hike will continue to rise, masses have lost their senses

• News By : Web Desk
• 2022-06-05 10:27:48

Karachi: 5 June 2022: Both petrol and diesel still carry a subsidy of around Rs9 and Rs23, respectively. This will have to go as well. Yet, the increase in fuel prices will not stop here. Depending on what agreement it has with the IMF, the government may be able to put off announcing more increases until after the budget is passed.
The previous PTI government had promised the IMF a petroleum development levy (PDL) and a 17% General Sales Tax (GST) on fuel. If these are announced in the current month, we can expect petrol and diesel prices to fall between Rs280 and Rs285 a litre. Of course, this assumes that international oil prices remain unchanged. If they register a spike in the coming weeks or months, that will have to be passed on as well.
Nepra has also revised the baseline electricity tariff by almost Rs8 per unit, more than a 45% increase in the existing basic tariff. If international oil prices increase, the tariff will go up again, as it usually does under the fuel price adjustment mechanism. With the slide in Pakistan's rupee, the inflationary impact of these changes will be felt throughout the coming months. None of this bodes well for the economy, particularly for the poor, who will bear the brunt of these price changes the most.

• Share