Pakistan's Fuel Price Surge Amid Global Tensions
Pakistan increased diesel and petrol prices by over 50% due to rising global oil prices influenced by the Middle East conflict. The government also announced subsidies to support farmers and transport sectors, but the blanket subsidy is unsustainable amid ongoing international tensions and market volatility.
In a significant economic move, Pakistan on Thursday elevated consumer prices for diesel and petrol by more than 50%, marking the second increase within a month. This decision comes in response to escalating global oil prices, which have been fueled by ongoing Middle East conflicts.
The price adjustment sees diesel rise to 520.35 rupees ($1.88) per litre, while petrol increases to 458.40 rupees per litre. Ali Pervaiz Malik, Pakistan’s petroleum minister, justified the hikes at a news conference, highlighting the uncontrollable international market prices amid the US-Iran war.
Additionally, the government unveiled subsidies for small farmers and transport sectors, yet Finance Minister Muhammad Aurangzeb warned of their unsustainability due to surging oil prices. This economic turbulence is poised to spur inflation, significantly impacting Pakistan's impoverished populations.
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