Pakistan in Media

Petrol prices have gone up by Rs4.80 a litre to just over Rs65. The government says that the decision comes in response to a rise in the price of oil in global markets. The opposition has lashed out in criticism demanding the price hike be reversed. Other petroleum items have become costlier too, including kerosene oil which lights the stoves of the poor. Following the hike, the government estimates Rs8 billion will be collected in September through the petroleum levy. People everywhere are meanwhile desperately doing their household maths to see what it will mean for them. Most wonder, at a time when inflation is already rampant and wages have failed to keep pace, how they will manage and whether any corners remain to be cut.

The rise in the cost of fuel of course means that as transporters raise their rates, the price of virtually every commodity will go up. This comes at a time when consumers are already struggling to cope with the Ramazan hike that has had an impact on virtually every household. Despite attempts by provincial governments and city administrations, there has at best been only partial success in controlling profiteering. The oil price increase also revives criticism based around the perception that while gains in international markets are immediately passed on, the same principal does not apply when the global price drops. Courts too have taken note of this in the past. The latest surge will reignite the controversy, especially as it comes at a time when the opposition is searching for issues that can be used against the government, which seems just a year and a half after it came to power to be facing a growing popularity crunch.
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