Islamabad, September 12, 2023 – As of today, September 12, 2023, the petroleum prices are in Pakistan as petrol and diesel stand at Rs 305.36 per liter and Rs 313.84 per liter, respectively. These prices are slated to remain in effect until September 15, 2023.
The nation of Pakistan is grappling with an unprecedented petroleum crisis, as fuel prices soar to historic highs, reaching a staggering Rs 305.36 per liter for petrol and Rs 313.84 per liter for high-speed diesel (HSD) as of September 12, 2023. These exorbitant rates, which have crossed the Rs 300 per liter threshold for the first time, are expected to remain in force until September 15, 2023, triggering widespread anxiety among the populace.
The genesis of this alarming price surge dates back to August 31, 2023, when the interim government announced a substantial and sudden escalation in fuel costs. This extraordinary development has ignited concerns of impending inflationary pressures and their profound ramifications on Pakistan’s already fragile economy.
The primary catalyst behind this tumultuous surge is the dramatic depreciation of the Pakistani rupee (PKR) against the robust US dollar. Over the past ten days, the PKR has experienced a precipitous nosedive, plummeting to an all-time low of PKR 305.54 against the US dollar on August 31, 2023. This staggering devaluation has inflicted severe constraints on Pakistan’s ability to procure petroleum products at stable prices, given the nation’s heavy reliance on imports to satisfy its insatiable domestic energy appetite.
Pakistan’s status as a net importer of petroleum products compounds its precarious situation. Despite the adverse ramifications of skyrocketing petroleum prices on local consumption and businesses, the country found itself importing energy commodities valued at an astonishing $791 million in July 2023, a stark contrast to the $1.44 billion imported during the corresponding month in the previous year. This mounting dependence on foreign imports exacerbates the government’s compulsion to recalibrate prices in response to the tumultuous oscillations in the global energy market, which have exhibited pronounced volatility in recent times.
As the Pakistani populace grapples with these staggering fuel prices, the nation braces itself for the socio-economic repercussions of this extraordinary predicament. The unfolding scenario underscores the immediate need for a comprehensive strategy to mitigate the adverse impact on the economy and to steer the nation towards a more stable energy future.