Pakistan fuel prices at record high with effect from Feb 16; check details

Pakistan hiked up the prices of petrol and gas to a historic high in a bid to appease the International Monetary Fund (IMF) for unlocking the critical loan tranche. The increase in fuel prices will inflict more pain on the already-burdened citizens of the South Asian nation that is facing its worst economic crisis in history. 

Following a new increase in fuel prices, Pakistani citizens will now pay PKR 272 per litre for gasoline and PKR 280 for diesel. The residents of the South Asian country, which is experiencing its greatest economic crisis in history, would suffer even more anguish as a result of the hike in fuel costs.

The announcement about the hike comes just a few hours after the Shehbaz Sharif government tabled a supplementary finance bill in the Pakistan National Assembly. To combat the present economic crisis, the government has suggested hiking the goods and services tax to 18%, which would generate PKR 170 billion in additional income.

In addition, kerosene oil has also become costlier and will retail at PKR 202.73 per litre. The new prices will come into effect from 12 am on Thursday. The increase in oil prices was anticipated since it was one of the requirements imposed by the International Monetary Fund for the release of critical financial assistance. 

For instance, a litre of milk retails for 210 PKR in the country suffering from the crisis, while a kilo of chicken costs between 700 and 800 PKR. Other necessities like wheat, legumes, and vegetables continue to be expensive.

Through the hike, the Pakistan Democratic Movement (PDM)-led federal government aims to reduce the budget deficit and broaden its tax collection net.