A big rise in fuel prices was expected, it is highly disappointing nevertheless. Given a Rs 35 per litre hike in prices of diesel and petrol will add to inflationary pressures in the economy, this development has certainly exacerbated the ordeal of the common man who is already struggling to make ends meet. In other words, he’s no longer able to deal with the challenge of inflation and price hike.
The government appears to have taken this decision to appease the International Monetary Fund (IMF) with a view to unlocking the stalled lending. It is important to note that the government had abruptly cold-shouldered the IMF soon after Miftah Ismail was replaced by incumbent finance minister Ishaq Dar. But the deteriorating economic situation has forced the government to begin to fulfill IMF’s conditions ahead of Fund’s 9th review talks.
The government, in my view, ought to have proceeded slowly and incrementally insofar as fuel prices are concerned. The Rs 35 per litre increase is indeed a big rise in the prices of petrol and diesel. The latest hike in fuel prices could possibly create social or civil unrest. Hence the need for revising the current hike downwards to Rs 20 per litre.
Shahid Mehdi (Karachi)
Copyright Business Recorder, 2023
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