Pakistan is beginning to feel the economic fallout of the ongoing US-Israel war on Iran, with the government announcing a steep increase in fuel prices that analysts described as a “petrol bomb” on an already struggling economy, Dawn reported.
The price of petrol and high-speed diesel was raised by PKR 55 per litre, only hours after officials had assured the public that petroleum supplies were sufficient and the situation was under control. The sudden hike reflects the sharp surge in global oil prices triggered by the conflict involving Iran, which has disrupted energy markets and raised fears of supply shortages.
Long queues were seen at petrol pumps across several cities as motorists rushed to fill their tanks before the new rates took effect. Reports from different parts of the country suggested that some fuel stations temporarily closed their pumps, apparently to avoid selling fuel at the old prices, according to Dawn.
Pak govt scraps WFH advisory
Prime Minister Shehbaz Sharif and Finance Minister Muhammad Aurangzeb had earlier attempted to reassure the nation that Pakistan’s fuel reserves were adequate and that authorities were monitoring the situation closely. However, the government ultimately decided that rising international oil prices made a domestic price increase unavoidable.
Earlier on Friday, the government also shelved a proposed national action plan that envisaged work from home and distance learning measures in response to a potential fuel crisis, and instead decided to keep normal activities unchanged for at least a week.
Consequences for fuel price hike in Pakistan
The fuel price hike is expected to have widespread consequences for the public and businesses alike. Higher petrol and diesel costs typically translate into increased transportation and production expenses, which in turn push up the prices of essential goods.
For many Pakistanis already coping with economic hardship and inflation, the surge in fuel prices is likely to add further financial strain. The government now faces the challenge of balancing economic stability with the unpredictable effects of a widening regional conflict.