Islamabad, Dec 30 (NationPress) The year 2024 has proven to be incredibly difficult for the populace of Pakistan, as soaring inflation rates have continuously added to the hardships families endure in meeting their basic needs, largely due to government strategies and their commitment to the conditions laid out by the International Monetary Fund (IMF).
While the coalition government led by Prime Minister Shehbaz Sharif asserts that it has set the nation's economy on a path toward stability, the advent of the new year is ushering in yet another unwelcome surprise for citizens, as the government prepares to announce a fuel price hike on New Year’s eve.
According to reports, the costs of High-Speed Diesel (HSD), Light Diesel Oil (LDO), and Kerosene are projected to surge by at least Rs 4 to Rs 5 per litre for the initial two weeks of 2025. Meanwhile, petrol prices are expected to fluctuate by approximately Rs 1 per litre.
In Pakistan, fuel prices are revised every two weeks as the country attempts to navigate the repercussions of global oil price variations while adhering to the IMF EFF (Extended Funding Facility) program.
On December 15, the prices of HSD decreased by Rs 3.05, whereas petrol prices remained stable. According to government insiders, oil prices in the international market have been unstable, which will be reflected in the forthcoming announcement regarding adjusted fuel prices in Pakistan.
“Prices for HSD and LDO have escalated in the international market since December 15. The ex-refinery cost of kerosene oil has also maintained a high level. Additionally, the import premium on petrol and diesel, coupled with a stable exchange rate, has contributed to the situation,” explained Khaleeq Kiani, an economic analyst.
“These elements will undoubtedly influence the upcoming revisions in fuel prices within the country, potentially leading to an increase of at least Rs 5 per litre for LDO and Kerosene, along with a Rs 4 rise for HSD,” he added.
This imminent hike in fuel costs is sure to exacerbate the hardships faced by the population, particularly affecting transporters, including private bus services, heavy goods carriers, small vehicles, rickshaws, and motorcycles, all of whom are already grappling with the strain of biweekly fuel price adjustments, compounded by elevated inflation rates, lack of job opportunities, and an unfavorable business climate.
It is fair to state that in Pakistan, the middle and lower-middle classes are directly impacted by rising fuel prices, as an increase in fuel costs translates to higher prices for essential items like vegetables, fruits, meat, and other groceries—due to increased transportation expenses for trucks, buses, and tractors. Moreover, tube wells and threshers in agriculture rely on HSD, so an uptick in fuel prices also leads to soaring vegetable costs.
“In Pakistan, employees receive monthly salaries. Often, these payments are delayed, cuts are enforced, and layoffs occur frequently. Yet, when it comes to household budgeting, fuel, basic utilities, electricity, and gas prices escalate every fortnight… consider how long a lower-middle-class family can endure such conditions,” lamented Amanullah Khan, a resident of Rawalpindi.
“Managing household expenses, covering children’s educational fees, and functioning in an environment where job security is non-existent has become untenable. The government makes lofty claims of progress. However, the reality is that this system of biweekly inflation and fuel price increases serves only the affluent. Individuals like us are merely collateral damage in this scenario,” he concluded.
