Islamabad, September 10, 2023 – The latest update on petroleum prices in Pakistan reveals a concerning trend for citizens and policymakers alike.
As of today, September 10, 2023, the prices of 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.
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The recent surge in fuel costs has triggered unprecedented levels of anxiety among the Pakistani population, with petrol prices surpassing the Rs 300 per liter threshold for the very first time. The immediate concerns revolve around the looming specter of inflation and its potential impact on the nation’s economy.
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Pakistan currently grapples with an unprecedented petroleum crisis as prices reach historic highs. The shockwaves were initially sent across the nation on August 31, 2023, when the interim government announced a substantial increase in petrol and high-speed diesel (HSD) prices. With petrol now priced at Rs 305.36 per liter and HSD at Rs 313.84 per liter, these rates are at an all-time high, burdening the Pakistani population due to escalating fuel costs.
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The primary driver behind this alarming price surge is the significant depreciation of the Pakistani rupee (PKR) against the US dollar. Over the past ten days, the PKR has experienced a sharp decline, hitting an all-time low of PKR 305.54 against the US dollar on August 31, 2023. This depreciation has severely impacted Pakistan’s capacity to secure petroleum products at stable prices, given the nation’s heavy reliance on imports to meet domestic energy demands.
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As Pakistan stands as a net importer of petroleum products, it finds itself in a challenging position. Despite the adverse implications of rising petroleum prices on local consumption and businesses, the country imported energy products worth a staggering $791 million in July 2023, compared to $1.44 billion during the same month the previous year. This heightened dependence on imports further amplifies the government’s pressure to adjust prices in response to the volatile fluctuations in the global market, which have been particularly pronounced in recent times.
