The government of Pakistan announced an increase in petrol and diesel prices effective December 1, 2024. Petrol prices rose by Rs 3.72 per liter, bringing the new rate to Rs 252.10 per liter, while high-speed diesel (HSD) increased by Rs 3.29 per liter, now costing Rs 258.43. The price adjustments were attributed to fluctuations in global oil markets and changes in the Inland Freight Equalization Margin (IFEM).
However, there was some relief for consumers as kerosene oil and light diesel oil (LDO) saw slight reductions of Rs 0.62 and Rs 0.48 per liter, respectively. This pricing adjustment is expected to impact transportation and agricultural costs, potentially driving inflation higher in the country
Yes, the increase in fuel prices significantly affects poor and low-income households in Pakistan. Higher petrol and diesel costs lead to increased transportation expenses, making it harder for people to afford basic necessities. Public transport fares typically rise after fuel price hikes, disproportionately impacting daily wage earners and those relying on public transit.
Additionally, fuel price surges often result in higher costs for goods and services due to increased logistics and transportation expenses. Food prices, in particular, tend to spike, straining household budgets. For rural communities dependent on diesel-powered agricultural machinery, farming costs escalate, reducing profitability and causing food insecurity.
These cumulative effects deepen poverty and inflationary pressures, making it challenging for marginalized communities to cope.
