Petroleum Prices Surge by 45%, Driving Inflation in Pakistan

Petroleum Prices Surge by 45%, Driving Inflation in Pakistan

Karachi, June 2, 2023 – Petroleum prices in Pakistan have experienced a significant increase of 45% on a year-on-year basis, contributing to a rise in inflation, according to official statistics released on Friday by the Pakistan Bureau of Statistics (PBS).

The Sensitive Price Indicator (SPI) recorded a 43% increase by the week ended June 1, 2023, compared to the same period last year. Petrol and diesel prices have risen by 45.55% and 45.18% respectively on a year-on-year basis.

READ MORE: Pakistan petroleum sales decline by 47% in April 2023

The year-on-year trend reveals significant price increases in various commodities, including cigarettes (138.50%), Lipton Tea (114.93%), gas charges for Q1 (108.38%), wheat flour (105.56%), bananas (88.96%), potatoes (86.86%), rice Irri-6/9 (80.97%), rice Basmati broken (80.15%), pulse Moong (60.40%), bread (59.66%), eggs (55.29%), pulse Mash (53.70%), washing soap (48.61%), petrol (45.55%), and diesel (45.18%). However, the prices of tomatoes (42.14%) and onions (29.00%) have witnessed a decrease.

READ MORE: Attock Refinery forced to shut down due to smuggling of petroleum products

In the current week ended on June 1, 2023, the SPI increased by 0.03%. Notably, there were significant increases in food items such as onions (7.31%), potatoes (2.89%), chicken (2.87%), tea prepared (1.56%), tomatoes (1.11%), and non-food item energy saver (2.16%). On the other hand, notable decreases were observed in LPG (4.46%), wheat flour (4.06%), bananas (4.04%), petrol (2.96%), eggs (2.57%), diesel (1.94%), and various other items.

READ MORE: Govt. claims big relief in petroleum prices for first half of May 2023

Among the 51 items monitored, prices of 19 items (37.25%) increased, 14 items (27.45%) decreased, and 18 items (35.30%) remained stable during the week.

The significant surge in petroleum prices has contributed to inflationary pressures, exacerbating the cost of living for the general population. Higher prices of essential commodities, including fuel, are likely to have an adverse impact on various sectors and could further strain the already burdened economy.

READ MORE: Pakistan likely to slash petroleum prices from May 01, 2023

The government needs to closely monitor the inflationary trends and take appropriate measures to control rising prices, enhance affordability for the population, and address the underlying causes of inflation to ensure stable and sustainable economic growth.

Disclaimer: The figures provided in this news report are based on official statistics and are subject to change as new data becomes available.

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