Today’s petrol and diesel prices in Pakistan, as of September 7, 2023, are as follows and are expected to remain in effect until September 15, 2023:
Petrol: Priced at Rs 305.36 per liter.
Diesel: Priced at Rs 313.84 per liter.
The recent surge in fuel prices has reached unprecedented levels, posing significant challenges for the people of Pakistan. With petrol prices crossing the Rs 300 mark for the first time, immediate concerns have arisen, and there is growing apprehension about the looming threat of inflation on the economy.
Pakistan is currently grappling with an unprecedented crisis as petroleum prices reach record highs, presenting a major economic dilemma for both citizens and policymakers. On August 31, 2023, the interim government announced a substantial increase in petrol and high-speed diesel (HSD) prices, which sent shockwaves across the nation.
With petrol now priced at Rs 305.36 per liter and HSD at Rs 313.84 per liter, these rates have reached historic highs, burdening the Pakistani population due to the rising cost of fuel. This sudden price surge, surpassing the Rs 300 threshold for the first time, not only represents a troubling development but also raises serious concerns about imminent inflationary pressures on the economy.
The primary cause behind this alarming price surge can be attributed to 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 ability to secure petroleum products at stable prices, as the country heavily relies on imports to meet its domestic energy needs.
As Pakistan is a net importer of petroleum products, it faces a challenging situation. Despite the adverse effects of higher petroleum costs on local consumption and businesses, the country imported energy products valued at an astonishing $791 million in July 2023, compared to $1.44 billion in the same month the previous year. This reliance on imports further intensifies the pressure on the government to adjust prices in response to the volatile fluctuations in the global market, which have been particularly severe in recent times.
READ MORE: Pakistan Tightens Checks on Petroleum Levy Collection
