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Pakistan faces economic "inflation bomb" as fuel prices surge 20%
Pakistan faces economic inflation bomb as fuel prices surge 20%
Lahore [Pakistan], March 7 (ANI): The Pakistani government has announced a massive hike in fuel prices, with petrol and high-speed diesel rates jumping by PKR 55 per litre–an increase of approximately 20%. As of March 7, 2026, the new rates have pushed petrol to PKR 321.17 and high-speed diesel to PKR 335.86 per litre, placing an immense burden on an already struggling economy amid the escalating crisis in West Asia. The announcement has sparked widespread anxiety across the country, where residents are already battling high living costs during the month of Ramadan. Commuters and workers have expressed despair over the rapid cost-of-living increase.A rider, Muhammad Nadeem, told ANI, “It feels like a noose has been tightened around our necks. Nothing makes sense anymore. Yesterday, when I filled up with petrol, things still felt manageable. But today, I had to refill at Pakistani Rupees (PKR) 324 per litre. I am doing two jobs, but it’s still not enough to cover the expenses. Life is becoming increasingly difficult."Petrol costs have surged, making daily expenses harder to manage, and experts warn that this could push inflation up significantly. With petrol now reaching Pakistani Rupees (PKR) 324 per litre, the rise is expected to affect the prices of many other goods, making life increasingly difficult for ordinary citizens trying to cope with the growing financial strain.Experts warn that this fuel shock will likely trigger a second wave of inflation, as transport and logistics costs rise, inevitably driving up the price of food and essential goods.Commuter, Aslam Qadri, also explained his woes to ANI, “The government was aware of the situation. A war is going on between the US and Iran, affecting people around the world. Because of this conflict, petrol prices have increased. Now that petrol has become so expensive, the prices of other things will also rise."Commuter, Sohail Mahmood says, “… Prices keep rising with little hope of falling. They may drop by around 10%, but no more than that. This is making it increasingly difficult for us to survive…"A commuter, Mujeeb Iqtidar, told ANI, “Our government has never thought about our well-being or progress. It’s not only fuel prices–other essentials will also become more expensive. This is just a beginning."The government announced a Rs 55 per litre hike in the price of petrol and high-speed diesel each on Friday, as reported by Dawn.Consequently, the ex-depot high-speed diesel rate has been fixed at PKR 335.86 per litre while the ex-depot petrol price has been revised to PKR 321.17 per litre from PKR 266.17 per litre, with an increase of 17%.The sharp price revision comes as the escalating conflict between Iran, the United States, and Israel has effectively paralysed the Strait of Hormuz. As one of the world’s most critical energy chokepoints, the closure of this route has disrupted formal oil imports and throttled the informal supply lines upon which much of Pakistan’s border regions rely.Government officials, including Deputy Prime Minister Ishaq Dar, noted that Islamabad had “little choice" but to pass on the impact of skyrocketing international oil prices to consumers to stabilise national energy finances and adhere to requirements set during IMF consultations. (ANI)
Source: News18
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