The Pakistani government has raised the price of petrol by PKR 8 per litre to PKR 272 per litre, effective from the 1st of July. This is the third time this year that petrol prices have been raised in the country. The increase comes after international oil prices rose due to increased demand in the face of the COVID-19 pandemic. The government had initially reduced the price of petrol by PKR 30.50 per litre in March.
The price hike is expected to put an additional burden on the already strained finances of the public. The government has also increased the price of diesel and kerosene oil by PKR 10 and PKR 5 per litre, respectively. The new prices for these fuels will stand at PKR 227 and PKR 158.50 per litre respectively.
The government has justified its decision to raise the prices by citing the rising cost of international crude oil and the need to maintain a balance between the international market and domestic prices. The government also stated that the price increase will help it to generate additional revenue and reduce the fiscal deficit.
Reaction to the price increase has been largely negative, with many people saying that it will put an additional burden on the already strained finances of the public. The government has also faced criticism for not passing on the full benefit of the reduction in international crude oil prices to the public.